The role of firms’ innovation strategies in private equity investments

Abstract : It is more and more recognized that innovation capabilities are the main drivers of firm performance. While investors seem to take into account innovation capabilities in their investment decision, very few is known however on the significance of innovation criteria in investor’s rationale and on related assessment methodologies. From a theoretical perspective, no precise relationship between identified quantifiable innovation indicators (such as R&D investment, patents or number of past innovations) and either firm performance (Cameron 1998, Demirel and Mazzucato 2009) or investment has been established. This results remains regardless of the selected performance criteria (turnover, margin, employment, survival…). There is therefore a growing research question about the variables that could help investors steering firms’ innovation capabilities. From an empirical perspective, some investors like venture capitalists are specialized in financing innovative firms. But their rationale on innovation capabilities remains mostly tacit. Innovation assessment appear implicitly through the set of criteria used to select investment proposals. Nevertheless, those criteria characterize results of innovative activities more than capabilities. The objective of this research is therefore to investigate private equity investors’ rationale to characterize the role of firms’ innovation strategy in their decision making process and then shape investment steering tools accordingly
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Conference papers
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https://hal-mines-paristech.archives-ouvertes.fr/hal-01496269
Contributor : Laure-Anne Parpaleix <>
Submitted on : Thursday, March 30, 2017 - 8:04:47 PM
Last modification on : Monday, May 27, 2019 - 10:20:33 AM

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  • HAL Id : hal-01496269, version 1

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Laure-Anne Parpaleix, Kevin Levillain, Blanche Segrestin. The role of firms’ innovation strategies in private equity investments. 24TH INNOVATION AND PRODUCT DEVELOPMENT MANAGEMENT CONFERENCE, Jun 2017, REYKJAVIK, Iceland. ⟨hal-01496269⟩

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