The Impact of Venture Ccapital Investments on Strategic Innovation in Knowledge-based Organizations

Recently venture capital has been introduced in scientific and research circles of the country that is initial development (Start-ups) investment in start-ups and financing of newly established companies need to expand their business deals. This study empirically examines the knowledge based companies that have used venture capital, compared with state-owned enterprises that have benefited from government. Their innovative activities has been compared with other organizational characteristics and the role of venture capital in innovative strategies has been analyzed.
Findings show that the knowledge based companies attracted more intercompany potential fund for their portfolio and take care to the results of research and development. However, it has been also found that public financing of state-owned enterprises experience less financial constraints. But these companies have less capacity and innovative strategies. Results also show the specific role of venture capital in the form of innovative strategies.