Corporate venturing and open innovation (for example, supplier innovation) are complementary and should be part of a holistic approach to innovation.
The same can be said of engaging in early-stage and later-stage ventures at the same time (which I agree can and perhaps should be treated in a different way) to create short-term innovation and secure longer-term options.
Furthermore a close co-operation between industry players, knowledge institutions and government organisations should be part of the innovation strategy as well, especially in the early stage but also later.
Such a holistic approach could make innovation and corporate venturing less dependent on economic cycles or changing chief executives. For example, at KLM we engage with Dutch start-ups (early stage) via the Mainport Innovation Fund. Alongside KLM, the Schiphol Group, Delft University of Technology and Rabobank are also partners in this seed capital fund.
This way the fund can act not only as a financial investor in start-ups, but also as a strategic partner. For example, KLM or Schiphol can act as "launching customer", sharing industry and market knowledge, and so on.
The fund also offers the opportunity to scout early-stage companies and developments. Later-stage ventures are set up directly with relevant parties, such as suppliers, to bring on board all needed competencies. The format of co-operation varies from long-term agreements to joint ventures.
In both short or longer-term approaches, the link with the current businessis carefully definedand business owners and sponsors involved. For short-term links, there is close co-operation with the relevant business units from the moment the opportunity is explored to secure business integration and benefits late.
There are no guarantees, but a hybrid model increases the chances of success considerably.