Partnerships between small startups and established companies can be the key to innovation, but the journey is often challenging.
“We need small startups. They’re the ones bringing fresh, new ideas,” says researcher Medhanie Gaim at Oslo Business School at OsloMet.
For startups to grow and survive, teaming up with a big player can be crucial.
“It gives them access to resources, markets, and a safe space to test and improve their technology,” Gaim explains.
Missing out on the future
Together with colleagues from Umeå University in Sweden and BI Norwegian Business School he has studied what it takes for a small startup to land a deal with a large company.
He hopes their findings will make collaboration easier.
“If big companies aren’t open to what small startups can offer, they might miss out on the future,” he says.
Large firms often focus on improving what they already do well, rather than developing new tech – unlike startups.
“Just look at how vital startups were for vaccine development during the pandemic or today’s AI breakthroughs.”
Observed 150 meetings
Despite the success stories, these kinds of collaborations are hard to establish.
Over four years, the researchers followed Ignite Sweden, a nonprofit that connects startups with corporates and supports innovation.
They observed 150 meetings and interviewed both sides to learn what makes collaboration work and what can sink it.
If big companies aren’t open to what small startups can offer, they might miss out on the future.– Medhanie Gaim
Problem-solving and co-creation
The first is problem-solving. Big companies team up with startups that have unique solutions to their specific challenge.
“This creates a focused and predictable process,” Gaim explains.
The second is co-creation. It’s a more open, exploratory approach where the startup is an innovation partner, not just a supplier.
“It’s about creating something new together, not fixing a single problem.”
Speed mismatch
Even when things start well, obstacles often arise.
One big pathbreaker is speed mismatch.
“Startups move fast and expect quick decisions, while large companies have slow internal processes,” says Gaim.
This mismatch often leads to frustration and stalled projects.
The right contact person
Another challenge is finding the right people.
“Startups often don’t meet the decision-makers or those who ‘own’ the problem early enough,” Gaim explains.
Partnerships can also collapse if key people leave.
Clear ground rules
The third common pathbreaker is that projects go dormant.
“A pilot may look promising, but without a clear plan for next steps, startups face uncertainty and wasted resources,” underlines Gaim.
His advice is to agree on ground rules early.
“Set clear timelines – like how long a startup must wait before they can approach another company.”
Collaboration is a tango
Gaim offers clear advice for startups looking to engage in av collaboration with a large company:
“Be ready for obstacles and listen to what the companies need. Don’t just push your tech – show you understand their challenges and can adapt.”
But it takes effort and coordination from both sides.
“Collaboration is like a tango,” says Gaim and offers advice for larger companies as well.
Be clear about your needs, involve the right people from the start, and adapt to the startup’s way of working to make faster decisions.”
Look to Sweden!
Gaim believes Norway can learn from Sweden, where the government actively supports partnerships through Ignite Sweden.
“This has created a new culture of collaboration,” he says.
Ignite Sweden prepares both sides for partnership, boosting success and reducing the risk of stalled projects.
“Norwegian authorities should consider a similar model. It could lead to more successful partnerships and more Norwegian success stories.”
Reference
Gaim, M., Saad, E. og Nair, S (2005). Pathways to Successful Startup-Corporate Partnerships (journals.sagepub.com). California Management Review
