CVO (corporate venturing and open innovation) is a business model that enables companies to create value by commercializing their internal R&D projects and collaborating with external partners. The model has been successful in a number of industries, including the pharmaceutical, automotive, and aerospace sectors. CVO has also been used to fund early-stage start-ups and to support the growth of small businesses.
The key elements of CVO are:
1. Corporate venturing: This is when a company creates a new business or invests in an existing one with the aim of generating new revenue streams. The venture is typically outside the core business of the company and may be in a completely different industry. Corporate venturing allows companies to access new markets and technologies and can help them to be more agile and responsive to change.
2. Open innovation: This is the process of collaboration between companies and other organizations, such as universities or research institutes, to develop new products or services. Open innovation helps companies to tap into external knowledge and expertise, which can accelerate the development of new products or services. It can also reduce the risk associated with R&D projects by sharing the cost and expertise across multiple organizations.
3. Value creation: This is the ultimate goal of CVO – to create value for the company through commercializing internal R&D projects or partnering with external organizations on joint ventures. Value creation can take many forms, such as generating new revenue streams, reducing costs, or improving operational efficiency