P&G and Nokia are among companies placing R&D inside new startups as a way to cash in on internal technology innovations.
A picture taken on July 26, 2018 shows a view of the headquarters of Finnish telecoms giant Nokia in Espoo, Finland.For over a decade, the research arm of Nokia Bell Labs in Finland had been working on a cooling and energy efficiency technology for data centers and mobile network equipment. In June, that R&D effort took a big step outside its corporate parent.
Several large companies, such as BMW, Siemens, and Bosch, have adopted another method to make key startup connections, known as "venture clienting." "This is a way to leverage startups without the enormous cost and risk associated with corporate venture capital investing," said Gimmy, who estimated that only one out of 10 corporate venture capital investments done in a conventional way with equity actually results in a strategic benefit.
The goal is not just about a financial return on investment, but maintaining access to technology innovation, said Valarie Sheppard, former P&G treasurer and company transition leader who had responsibility for the global business development for several years before retiring in March 2021.