eCite Digital Repository

Corporate venturing and the rent cycle


Darroch, J and Miles, M and Paul, C, Corporate venturing and the rent cycle, Technovation , 25, (12) pp. 1437-1442. ISSN 0166-4972 (2005) [Refereed Article]

Not available

Copyright Statement

The definitive version is available at

Official URL:

DOI: doi:10.1016/j.technovation.2004.10.006


This study views entrepreneurial rents as renewable opportunities and explores how firms can effectively utilize corporate venturing to create and sustain economic rents. Schumpeterian entrepreneurs create rents by harnessing corporate venturing to exploit attractive economic opportunities. The Schumpeterian rent is composed of Ricardian and Austrian rents. Ricardian rents result from unique and non-reproducible characteristics or competencies of the firm, and hence, are not appropriable by imitators. Conversely, Austrian rents, or economic profit, are subject to dissipation by imitators and attract entry by competitors or Austrian entrepreneurs until they are bid to zero or destroyed by another Schumpeterian innovation. In this formulation, Austrian entrepreneurs are modeled as infra-marginal rent seekers. Consequently, to sustain rents, firms must cycle between using corporate venturing to create or discover Schumpeterian entrepreneurial opportunities and using venturing as a mechanism to exploit existing rent generating opportunities.

Item Details

Item Type:Refereed Article
Keywords:Corporate venturing; Schumpeterian; Austrian and Ricardian rent
Research Division:Commerce, Management, Tourism and Services
Research Group:Strategy, management and organisational behaviour
Research Field:Innovation management
Objective Division:Economic Framework
Objective Group:Management and productivity
Objective Field:Management
UTAS Author:Miles, M (Professor Morgan Miles)
ID Code:67889
Year Published:2005
Web of Science® Times Cited:12
Deposited By:Management
Deposited On:2011-03-08
Last Modified:2013-04-04

Repository Staff Only: item control page