Innovation is increasingly recognised as essential to developing a dynamic and successful business. However, despite achievements in corporate R&D labs, it’s not always easy for large companies to remain nimble and innovative as they grow. VC backed start-up companies are a great alternative source of entrepreneurial inventions, although the 10-year exit timeframe can limit options in the life sciences industry, which typically takes a longer time to pay off.
It’s all very well saying that, but what’s a better alternative? It may well be a combination of the two approaches. In an interview for Private Equity Findings, The Architecture of Innovation author Prof Josh Lerner noted that “What is quite striking is the potential for ‘hybrids’ – set-ups that combine the best of corporate R&D with the best of new venture – to address the issues associated with both of these individual models.”
“These initiatives could have big returns – not just for individual firms but for society generally.”
BioPacific Partners is proud to say we headed down this path two years ago, and have found great synergies for Corporate Venture funds with our regional venturing model. Check the other pages in this website for more detail on what we do.
By Emma Armitage, Business Analyst, BioPacific Partners