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Delve into various management approaches in corporate entrepreneurship, including intrapreneurship and corporate venturing. Understand their accounting implications and strategic differences for successful innovation.
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Intrapreneurship • Term coined by Pinchot in 1982 • Term “corporate entrepreneurship” used more today • Actually, “corporate entrepreneurship” has two parts • Intrapreneurship – internal R&D • Corporate venturing – external funding • Neither method best – need both • This class – some of both
Accounting Issues • Internal R&D • Expense against revenue • Impacts Income Statement • Corporate Venturing • Balance sheet transaction
Other Differences • Internal R&D • More product oriented • Evolutionary • Venture funding • Learn radical or disruptive technology • Seed new firms • Invest as prelude to acquiring