“Carve-Out” scheme to develop technology driven strategic businesses

Today the Internet together with the progress of semiconductor technology is dramatically changing the business environment, threatening existing businesses as well as offering new opportunities. K. Doi and the authors formalized a scheme that “carves-out” key personnel and technology from established companies and research institutes to incubate them as start-ups and create technology driven strategic businesses, following the earlier examples of Sony Play Station and Japan Display Inc. The “Technology Carve-Out Fund” was successfully raised in 2005, with a commitment of approximately 40 million U.S. dollars. Under the scheme, ten start-ups have been “carved out”. A series of “carve-out,” incubation and exit exercises demonstrate the effectiveness of the scheme, and lessons have been learned. Understanding these lessons may allow for greater success in the future.