Corporate Venture Capital and R&D Investment: An Empirical Analysis Based on the Organizational Learning

This paper investigates the effect of corporate venture capital (CVC) on the initiator company’s R&D investment. Using data from A-share listed companies from 2009 to 2016 in China, we find that CVC promotes R&D investment. Besides, the effect of CVC on R&D investment is influenced by industry-related factors; specifically, it is more pronounced in companies that conduct a major business-oriented venture capital. Further tests show that the association between CVC and R&D investment is stronger when the company operates in a high-tech industry, is located in a more developed region and is non-state-owned. Furthermore, the unique characteristics of CVC indicate that both a longer CVC duration and a greater number of CVC capitalists facilitate the association between CVC and R&D investment. Our study suggests that the organizational learning mechanism among CVC participants impacts the initiator company’s R&D investment. The findings have meaningful implications for listed companies in promoting R&D investment through organizational learning from CVC activities.