Open Innovation And Corporate Ventur Capital: Study For IBM Case

When Open Innovation becomes the main model for corporate innovation, more and more Open Innovation business models are being used, especially Corporate Venture Capital. IBM achieved good performance of using Corporate Venture Capital. The research of IBM's Corporate Venture Capital will help setup a good reference for the Chinese Corporate, who have started, or are planning to start the Corporate Venture Capital. This research is based on the current Theory of Open Innovation, analyzes the reason and advantage, and categories the realization methods.Based on the development of IBM's Open Innovation system, the research analyzes why IBM chose Corporate Venture Capital as the business model for Open Innovation, investigates and categories Corporate Venture Capital details. IBM's Corporate Venture Capital has 2 phases: the former phase charged by IBM Corporate Venture Group and the latter phase of merge and acquisition. The research investigates IBM Corporate Venture Group's task, strategy and successful stories. Meanwhile, the research analyzes IBM's strategy of merge and acquisition, by studying the strategy of IBM Software Group. IBM focuses on its own main business field– IT, whenever in the former or latter phase. It is a good reference for Chinese Corporate who concerns financial return more than strategy target. In the future study, the Open Innovation business model for other global companies will be chosen, and to find the best Open Innovation business model for Chinese Corporate.