Creating Growth with Externalization of R&D Results - The Spin-Along Approach
University of Aarhus - Business and Social Sciences, Department of Business Administration
affiliation not provided to SSRN
Heinrich Martin Arnold
Deutsche Telekom AG
September 11, 2009
Global Business and Organizational Excellence, Vol. 28, No. 4, pp. 44-51, 2009
After a long period of restructuring and outsourcing, companies are increasingly looking for new growth opportunities. Growth with existing products or by expansion in new markets is limited. Therefore, companies are searching for ways to expand their activities in new businesses. A frequently used tool of multinational enterprises is corporate venturing. Within corporate venturing, a further differentiation can be made between internal venturing and external venturing. Internal venturing promotes business ideas generated within the organization, whereas external venturing integrates business ideas developed outside the company.
This article presents a special case of corporate venturing: the spin-along approach of Deutsche Telekom Laboratories. It can be seen as a combination of internal and external venturing. In the spin-along approach, employees of the corporate research and development (R&D) department are encouraged to take their technology or business idea external by founding a separate company. Successful companies might later be bought and integrated back into Deutsche Telekom.
Number of Pages in PDF File: 10
Keywords: Corporate venturing, spin-along, venture leader, spin-out, spin-in, Deutsche Telekom Laboratories.
JEL Classification: M1, M10, M16, O3, O31, M13
Date posted: September 12, 2009 ; Last revised: October 15, 2009