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Corporate -Start-up Collaboration – Fuelling innovation and unlocking value through new age partnerships

September 27, 2021 2384 2 Product/Startups

Corporate -Start-up Collaboration – Fuelling innovation and unlocking value through new age partnerships

Today’s business landscape is evolving at an unprecedented pace and enterprises face disruptive forces across all dimensions of the value chain. The emergence of digital technologies and rapid innovation in business models is redefining consumer behaviour and expectations. Further, the rise of digital-native, new-age competitors means enterprises need to rethink their core value proposition. As enterprises shift gears to combat these disruptive forces, innovation can no longer be sourced just internally. Enterprises have a lot to gain by seeking outside-in perspectives and tapping into their extended partner ecosystem, especially start-ups. With the start-up ecosystem in India rapidly growing, global enterprises are driving new models of engagement with start-ups and have launched highly innovative start-up outreach and partnership programs across strategic focus areas, several of which are already yielding significant success. This playbook is an outcome of the discussions from NASSCOM's four-part ER&D’s immersive series on "Corporate – Start-up Collaboration: Fuelling innovation and unlocking value through new age partnerships”. We hope that this report serves as a useful reference guide to accelerate the learning curve, design successful programs and forge outcome-oriented partnerships for both corporates and the start-ups.

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Key Takeaways

 

  1. Corporates and start-ups collaborate for a variety of reasons including access to new markets, verticals, and avenues for growth, access to market knowledge, access to disruptive innovation, access to talent and entrepreneurial spirit
  1. The covid pandemic has enhanced the need for this collaboration
  1. There are multiple models of collaboration between the two and these include - Individual events, Procurement, Distribution, Technology licensing, Co-development / Joint technology partnerships, Accelerator, Incubator, Corporate Venture Capital, and Joint Ventures
  1. There are different areas where corporate and start-ups collaborate and some of them include collaborations for core business development, to complement each other’s capabilities, and other moon-shot initiatives, etc
  1. There are various challenges also faced by both corporates and start-ups, which might arise as a result of their collaborations, and these include challenges related to overall corporate strategy level, product strategy, operating model, culture, and legal.
  1. Going forward, corporate-start-up collaborations are expected to be the norm in the future, with a rising number of start-up investments and acquisitions and these collaborations will primarily focus on implementation

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