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Startups Don’t Just Disrupt Established Companies; They Join Them

The Close School’s resident sage sheds light on prospects for entrepreneurs in the U.S. job market.


January 5, 2015

By Dr. Roy Carriker

A recent Economist article points out a surprisingly diverse group of large, established firms such as Intel, 7-Eleven, Visa, Citigroup, BMW are investing in and/or acquiring startups to better improve on their investment returns in innovation and R&D.

A second reason for this movement is to guard against being deposed by a disruptive startup. Further, these firms feel there can be a great advantage in combining startup innovation with their financial muscle and market access.

Why this matters:

This trend, which brings startups into the corporate fold, represents a large upward opportunity for the entrepreneurship community and may possibly shift greater long-term economic emphasis and attendant financial support for entrepreneurship and startups.

Says Carriker: An entrepreneur friend of mine once told me: "Learn, earn, return." After 55 years of learning and earning around the world, I am returning.

Roy Carriker is a Teaching Professor and Director of Technology Entrepreneurship in the Charles D. Close School of Entrepreneurship. He is also a School of Biomedical Engineering, Science and Health Systems senior executive in residence.

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