We summarize insights from different recent reports on what makes it challenging for corporates to work with startups. We point out that some problems might be related to how these collaborations get started, while others are connected to how they are managed. We end by suggesting different steps that can help to rethink these collaborations.

1. Corporate – Startup
collaborations,
time for an upgrade?
quer.kraft Jahrestagung 2021
Institute of Entrepreneurship and Innovation Science
Dr. Ferran Giones
ferran.giones@eni.uni-stuttgart.de
1
University of Stuttgart I Institute of Entrepreneurship and Innovation Science
www.eni.uni-stuttgart.de

2. University of Stuttgart I Institute of Entrepreneurship and Innovation Science
1. Corporate – Startup collaborations, many options.
2. Do they work?
3. Why don’t they always work?
4. What can we do to get better?
2
Agenda

3. Corporate – Startups
Collaborations
Why?

4. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 4
Different structures to work with startups
Source:
https://soprasteriascaleup.com/clients/mind-the-gap/
https://www.bcg.com/publications/2019/corporate-startup-relationships-work-after-honeymoon-ends
startups

5. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 7
Differences across models – need to be aligned with innovation strategy!
Source: Giones, Shankar, Bettenmann (2020) R&D Today - https://www.rndtoday.co.uk/themes/impact-of-digital-technologies/

6. Corporate – Startups
Collaborations
Are they working?

7. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 10
Not everyone manages to make them work!
Source:
https://soprasteriascaleup.com/clients/mind-the-gap/
https://www.bcg.com/publications/2019/corporate-startup-relationships-work-after-honeymoon-ends

8. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 11
Not always satisfactory collaborations:
Source:
https://soprasteriascaleup.com/clients/mind-the-gap/
https://www.bcg.com/publications/2019/corporate-startup-relationships-work-after-honeymoon-ends

9. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 12
Not always satisfactory collaborations:
Source:
https://soprasteriascaleup.com/clients/mind-the-gap/
https://www.bcg.com/publications/2019/corporate-startup-relationships-work-after-honeymoon-ends
How often do the parties achieve their objectives in corporate-start-up collaborations?

10. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 13
That might relate to organizational and planning issues:
Source:
https://soprasteriascaleup.com/clients/mind-the-gap/
https://www.bcg.com/publications/2019/corporate-startup-relationships-work-after-honeymoon-ends
From the Sopra Steria report…
When it comes to the question about a clear value proposition
for the collaboration, corporates are more positive towards
start-ups than start-ups are towards corporates:
• 63 % of corporates believe start-ups have a clear value
proposition;
while only
• 40 % of start-ups believe that corporates have a clear
value proposition

11. Corporate – Startups
Collaborations
Why are they not working?

12. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 15
1. We forgot why we started collaborating
Source: Felin, T., & Zenger, T. R. (2014). Closed or open innovation? Problem solving and the governance choice. Research Policy, 43(5), 914–925. https://doi.org/10.1016/j.respol.2013.09.006
Startup
“problems”
These collaborations are
for a specific type of
problems / challenges!

13. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 16
1. We forgot why we started collaborating
Source: Felin, T., & Zenger, T. R. (2014). Closed or open innovation? Problem solving and the governance choice. Research Policy, 43(5), 914–925. https://doi.org/10.1016/j.respol.2013.09.006
Here we have
our suppliers!
If we know the problem
and the solution, either we
do it internally or we have a
supplier!

14. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 17
2. We are not really committed
Source: Mocker et al. (2015) Winning Together, NESTA, UK.

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3. It is difficult, startups are emerging organizations!
Source: Bone et al. (2019) The Impact of Business Accelerators and Incubators in the UK, BEIS research paper, UK.
Status changes of
startups after an
“acceleration” period

16. Corporate – Startups
Collaborations
Time for an upgrade?

17. University of Stuttgart I Institute of Entrepreneurship and Innovation Science 22
Upgrade suggestions for better collaborations
1. Adjust the goal
• Broad search field.
• Nice to have.
2. Bring in “structure”
• Innovation is complex
enough.
• Set the “scene” but not
the content.
• Block commitment
despite setbacks.
• Actively manage the
process.
3. Use the collaborations as
“radars” not as “hammers”
• Prepare to change search
direction.
• Find solutions to unknown
problems.
Startup
Sources:
https://www.capgemini.com/2015/01/how-to-prioritize-which-information-governance-work-packages-to-do-first/
https://www.bcg.com/publications/2021/deep-tech-innovation

18. Q&A – Open Discussion

19. Where to go next?
Shaping the research agenda

20. University of Stuttgart I Institute of Entrepreneurship and Innovation Science
1. Looking at the collaboration (inside):
• Knowledge exchanges, mitigating tensions, escalating commitment.
2. Taking the corporate perspective:
• Combining models, product innovations?, shifts in R&D?
3. Following the startup perspective:
• Motivations?, learning, short and long term effects.
4. Broadening (looking beyond) -> the ecosystem perspective
• Contribute to accelerate change, competition with other ecosystems,
(+) outcomes contribute to strengthening collaboration.
25
Building up the next steps

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Building up the next steps

22. Corporate – Startup
collaborations,
time for an upgrade?
quer.kraft Jahrestagung 2021
Institute of Entrepreneurship and Innovation Science
Dr. Ferran Giones
29
University of Stuttgart I Institute of Entrepreneurship and Innovation Science
www.eni.uni-stuttgart.de