A Seat at the Table: Venture Capital and Technology Spillovers

Drawing upon search and signaling theory, the influence that VC directors have on technology spillover is examined with respect to venture capital (VC)-backed firms in the semiconductor industry. Despite a plethora of research into technology spillovers, we still do not have a clear understanding of how VC directors affect the technological outcomes of a firm’s innovation efforts. Examined in the context of semiconductor firms between 1980-2005, my findings highlight the pivotal role that VC directors play in augmenting a firm’s ambidexterity. This research contributes new insights into the mechanisms by which VC directors introduce external knowledge that augments a firm’s spillovers into new technological domains and has important implications for entrepreneurs and their search strategies.