Abstract
The present work analyzes the effectiveness of CVC as a tool to enhance corporate sustainability. The key elements for continuous innovation are foreseeing the trends, incubation of new businesses, and effective investment recovery schemes. These elements can be more effective in the open innovation paradigm, in which a company utilizes both internal and external ideas and marketing routes. As an example, a case of CVC-driven open innovation in BASF is described, which greatly expanded the options for the company to secure business sustainability. The essential factors that led the project to a success are discussed. The three elements mentioned above are thought to be enhanced by partial externalization. CVC is also advantageous for the venture businesses in that it brings about not only money but opportunities in collaborative R&D, market development and other activities through an actual market player. CVC has thus proved to be a valuable alternative for continuous innovation.
