Sino-Inno-Cap

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Research

We provide cutting edge knowledge on investments within China, into China and from China outwards into the western market. We research about the significance, structure and modes of action of innovation management in the course of inorganic growth.

Research Project Overview

Our research investigates the significance, structure and impact of external innovation measures in the course of the inorganic corporate development of large Chinese enterprises (both private and state-owned) through corporate venture capital (and, by extension, through M&A) as a tool for achieving technology leadership in key industries.

 China has been highly successful in demonstrating how equity investment in key technologies can lead to market leadership. The emerging country of China has already overtaken Germany and Europe in some key industries. In 2018, for example, of the top 20 global Internet companies, eleven are from the United States and nine are from China, none from Europe. Germany and Europe can learn from Chinese methods of promoting innovation. The topic is highly relevant at present, especially due to the corporate investments by Chinese companies and the technological focus of the “Made in China 2025” initiative. Both public and private actors (e.g. investors and technology companies) from Germany and Europe should learn more about Chinese successes.

Research Structure and Artefacts

While there are many publications on CVC in the U.S. and Europe, little research has been done on CVC activities in China. The research focus lies on gaining knowledge about the significance, structure and modes of action of external innovation management in the course of inorganic corporate development of private and state-owned Chinese organizations as parts of the innovation ecosystem in China through corporate venture capital (and by extension M&A). Our research tackles the following questions:

 

  • How is corporate venture capital understood and implemented in China?

  • Who are the players?

  • What structures and strategies are used?

  • What is the relationship between CVC by Chinese actors (private as well as state-owned) and innovation policies to promote key technologies identified by the Chinese government?

  • How does CVC in Germany and Europe differ from the Chinese model?

  • What is the role of the institutional environment in moderating these differences?

  • How do new policies influence venture capital flow?

The concrete research results should lead to scientific articles and a practitioner study. In addition, the conception of case studies for university teaching and a conference as part of the China Europe Finance Summit are planned.