Abstract
As one of the technique to conquer "the Innovator's Dilemma" by argued Christensen, the Ministry of Economy, Trade and Industry (METI) recommends that large enterprises carve out new startup companies.This research is a case study on a carve-out company which is established for R&D business by a senior engineer who belong to a large enterprise. We show the points of decision-making by a large enterprise to allow the engineer to establish new startup company: the evaluation of the risk that employee might incur and the feasibility of the new business scheme.In addition, the advantages and the risk that the carve-out venture experienced are also discussed.