Innovation through cooperation between corporations and startups in Brazil

Abstract

The objective of this study is to investigate how major companies develop innovation projects in partnership with startups through the lens of corporate–startup engagement (CSE). The research aims to analyze the motivations, engagement models and internal validation processes for these partnerships, with a particular focus on the structural frictions that arise. The research employs an exploratory and descriptive qualitative method. Data were collected through in-depth interviews and processed using content analysis to capture the micro-foundations of these collaborations. The study reveals a significant gap between strategic intent and execution in CSE. Although corporations express a desire for disruptive, exploratory innovation, practical applications frequently devolve into projects focused on incremental operational efficiency. Major barriers are identified not merely as bureaucracy, but as fundamental structural frictions driven by corporate centralization, which constricts knowledge flows. Furthermore, the study identifies critical “pathbreakers” to collaboration, including severe speed mismatches and project dormancy driven by demands for uncompensated proof of concept (POCs). The research is limited by a non-probabilistic sample and a limited number of interviews, which preclude generalizable empirical conclusions. For corporate managers, the study emphasizes that establishing CSE requires intentional internal architecture – such as creating structural “shortcuts” and dedicated innovation units – to bypass the friction of centralized processes. For startups, it underscores the need for strategic alignment to navigate corporate requirements and avoid the pitfalls of speed mismatches and delayed financing. The paper underscores the strategic importance of technological innovation for boosting national productivity and presents CSE as a vital alternative for economic development. The research contributes to the theory of organizational ambidexterity by providing a multi-perspective empirical analysis (triangulating data from corporate managers, startup entrepreneurs and connecting agents). It explicitly maps the theoretical ““pathbreakers”“ and practical friction points that hinder the implementation of ambidextrous strategies.