**5.1 Research and development**

Research and development is fairly well understood without much explanation, plus we have discussed it throughout this chapter. However, to be as complete as possible, we offer the definition of R&D as the internal process that discovers and builds new products, services, business models and inventions. The U.S. National Science Foundation defines it as 'creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of humankind, culture and society and to devise new applications of available knowledge' ([33], p. 2).

The next category in the corporate entrepreneurship model outlines methods used in corporate venturing. Here, we define them as being either 'inside-out,' indicating that it was initiated by the innovating firm, which then sought arrangements with external organizations, or 'outside-in,' meaning innovation is sourced from external organizations and pulled into the innovation process. Before we outline some of these methods, we first need to establish a definition of corporate venturing. For that, we turn to a definition used by Zahra who wrote that it is when, 'The firm will enter new businesses by expanding operations in existing or new markets' ([34], p. 1715). In the following section, we briefly identify methods of corporate venturing and then discuss the use and perceived success of these methods.
