Integrate external sources of knowledge

Techno revOn top of their own R&D activities, product roadmaps and experience curves, firms must develop the ability to proactively harvest technology (r)evolutions. They must be able to absorb technology intelligence from external sources, both in their socioeconomic ecosystem and in the wider environment.

Fig_3_16On top of their traditional marketing approaches, firms need to develop user-centric ways to “pull” untapped customer needs and uncover value gaps. They need to combine powerful analytics with in situ and empathetic observations as well as lead users’ interactions and involvement.

CVFirms exposed to technology-intensive sectors (i.e. most firms) should invest time, money and resources to network and work with disruptive start-ups, in particular through corporate venture capital initiatives. This must allow them not only to create options and leverage their assets but also to effectively develop new competitive and technology intelligence.

Bibliography

Harvest technology (r)evolutions

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Explore untapped customer needs: user-centric innovation

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Seeding new ventures: corporate venture capital

  • (Book) Landström, Hans, ed. Handbook of research on venture capital. Edward Elgar Publishing, 2007.
  • (Book) Maula, Markku VJ. Corporate venture capital and the value-added for technology-based new firms. Helsinki University of Technology, 2001.
  • (Video) Biopharma Health MIT Hackathon
  • (Video) Connecting Companies of All Sizes through Innovation by  Kuczmarski Innovation (on Vimeo)
  • (Video) The UBS Hackaton (on UBS website)
  • (Article) Arora, A., & Gambardella, A. (2010). Ideas for rent: an overview of markets for technology. Industrial and Corporate Change, 19(3), 775-803.
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  • (Article) Block, Zenas, and Oscar A. Ornati. “Compensating corporate venture managers.” Journal of Business Venturing 2.1 (1987): 41-51.
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  • (Article) Dushnitsky, G., & Lenox, M.J. (2005). When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates. Research Policy, 34(5), 615-639.
  • (Article) Dushnitsky, G., & Lenox, M.J. (2006). When does corporate venture capital investment create firm value?. Journal of Business Venturing, 21(6), 753-772.
  • (Article) Gompers, Paul, and Josh Lerner. “Venture capital distributions: Short‐run and long‐run reactions.” The Journal of Finance 53.6 (1998): 2161-2183.
  • (Article) Keil, T. (2004). Building external corporate venturing capability. Journal of Management Studies, 41(5), 799-825.
  • (Article) Keil, T., Maula, M., Schildt, H., & Zahra, S. A. (2008). The effect of governance modes and relatedness of external business development activities on innovative performance. Strategic Management Journal, 29(8), 895-907.
  • (Article) Knoben, J., & Bakker, R. M. (2019). The guppy and the whale: Relational pluralism and start-ups’ expropriation dilemma in partnership formation. Journal of Business Venturing 34(1), 103-121
  • (Article) Maula, M. V., Keil, T., & Zahra, S.A. (2013). Top management’s attention to discontinuous technological change: Corporate venture capital as an alert mechanism. Organization Science, 24(3), 926-947.
  • (Article) Maula, M., E. Autio, and G. Murray. “Prerequisites for the creation of social capital and subsequent knowledge acquisition in corporate venture capital.” Venture Capital 5.2 (2003): 117-134.
  • (Article) Puranam, P., Singh, H., & Zollo, M. (2006). Organizing for innovation: Managing the coordination-autonomy dilemma in technology acquisitions. Academy of Management Journal, 49(2), 263-280.
  • (Article) Puranam, P., & Srikanth, K. (2007). What they know vs. what they do: How acquirers leverage technology acquisitions. Strategic Management Journal, 28(8), 805-825.
  • (Article) Schildt, H. A., Maula, M. V., & Keil, T. (2005). Explorative and exploitative learning from external corporate ventures. Entrepreneurship Theory and Practice, 29(4), 493-515.
  • (Article) Shrader, Rodney C., and Mark Simon. “Corporate versus independent new ventures: Resource, strategy, and performance differences.” Journal of Business Venturing 12.1 (1997): 47-66.
  • (Article) Sykes, Hollister B. “Corporate venture capital: Strategies for success.” Journal of Business Venturing 5.1 (1990): 37-47.
  • (Article) Sykes, Hollister B. “The anatomy of a corporate venturing program: Factors influencing success.” Journal of Business Venturing 1.3 (1986): 275-293.
  • (Article) Titus, Varkey K., Jenny M. House, and Jeffrey G. Covin. “Resource stocks and needs as drivers of external corporate venturing.” Academy of Management Proceedings. Vol. 2014. No. 1. Academy of Management, 2014.
  • (Article) Wadhwa, A., Phelps, C., & Kotha, S. (2016). Corporate venture capital portfolios and firm innovation. Journal of Business Venturing, 31(1), 95-112.
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