Fatima Shuwaikh attended at the RENT XXXI conference (Research on Entrepreneurship and Small Business) which has been held in Lund (Sweden) the November 15-17. The main theme of the conference was “Relevance in Entrepreneurship Research“. She presented her paper: Knowledge Transfer, strategic Fit, Valuation: The Corporate Venture Capital.
The purpose of this paper is to investigate the relationship between corporate venture capital investment and the level of knowledge transferred from portfolio companies to their corporate investors.
The results of this research suggest that corporate investors need a proper mechanism of knowledge transfer if they are to maximize the innovative outcome of CVC investment. This mechanism is the strategic fit between the partners.
Our empirical results based on a large panel of US start-ups over a 20- year period of time provide evidence that higher amounts of CVC investments is associated with higher transfer of knowledge in addition to a positive and direct relationship between the level of strategic fit and the level of patenting output. Moreover, we present evidence that the knowledge transferred from the portfolio company to the corporate investor increases the financial valuation of its portfolio company.”