Stimulating innovation through corporate venture bases

A common shortcoming, both in the literature on corporate venturing and in practice, is insufficient or no attention to the ability and responsibility of firms to stimulate and influence the creation of innovative ideas that can lead to new ventures. This paper focuses on the initial process of corporate venturing and explores how corporate venture management can stimulate the generation of genuinely original and dynamic ideas by establishing and maintaining a venture base. The following concrete actions are proposed in order to promote and improve the functionality of the venture base: take responsibility, secure access, acquire network capabilities, gain competencies in how to influence the vision and agendas in knowledge-creating networks, contextualize, and invite to discussion at an early stage. The paper is mainly conceptual in nature but draws on 22 semistructured interviews conducted between 2000 and 2002 with managers of corporate venturing departments at six multinational Danish firms in knowledge-intensive industries. The interviews are used to illustrate the main arguments of the paper. (C) 2004 Elsevier Inc. All rights reserved.