March 21 - BusinessWeek.com - Big companies can benefit from buying startups when it gives insight into market dynamics and puts them at the leading edge of industry innovation, says Julie Meyer.
Something new is happening in the way technology innovations are getting bedded down in the industry. Briefly put, venture capital-backed startups are being acquired much earlier in their development by larger companies that offer entrepreneurs a rapid path to growth and scale. For big corporations, in turn, startups help create a "mixed economy" of innovation, balancing the greater certainty of in-house research and development and organic growth [and its longer time horizon] with an earlier but riskier starting position in emerging technologies. Read More.
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