The Venture Capital Perspective on Collaboration with Large Corporations/MNEs in London and the South East: Pursuing Extra‐Regional Knowledge and the Shaping of Regional Venture Capital Networks?

A seeming paradox of globalization is that while innovation and the industries and institutions that support it transcend local and national boundaries, high‐tech innovative activity continues to agglomerate in a select number of high‐capacity regions. Research, however, suggests that innovative regions must—through collaborative activity and related networks—both economize regional capacities while remaining open to global knowledge and finance. Collaboration and network formation are viewed as critical in this regard, as the competitive pressures of globalization are forcing firms to adopt collaborative and open innovation practices: forging relationships with external partners. Two important sources of knowledge and finance are regionally concentrated venture capital firms and large corporations, often globe‐straddling multinational enterprises. While collaboration occurs between these two actors, an understanding of the processes and implications has only begun to emerge. Focusing on collaborative venture capital activity in London and the South East, this exploratory paper presents a preliminary understanding as to the role that this particular collaborative activity plays in the pursuit of complementary, extra‐regional knowledge and expertise, and the extent to which this collaboration is recharacterizing the shape of regionally based venture capital networks.