After the dot-com bubble burst five years ago, corporate-sponsored venture capital funds jumped off that bandwagon in droves. Some companies were restructured; others decided these funds didn't have much of an impact on their bottom lines. But Wharton management professor Gary Dushnitsky argues that venture capital is an essential tool for corporations to increase their innovativeness. As more and more new technologies spring up, he says, "large corporations recognize they no longer have a monop...
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