Corporate-Startup integration: Understanding the types of startups manufacturing corporates are interested in and how to achieve a successful integration

Abstract: KPMG has recognized that large manufacturing corporates in Sweden are experiencing impaired growth possibilities and have therefore started to turn to startups to help with innovation. Corporates have traditionally focused on growth through product improvement or market expansion but have recently started to shift their focus to acquisitions and partnerships with high potential startups. However, since there are many differences between corporates and startups the collaboration can be difficult to handle, especially when it comes to integration. This study aims to investigate what types of startups large corporates are currently looking to collaborate with and to create a practical framework that can act as a guide to increase the chance of successfully integrating a startup into a corporate's operations. This study is a qualitative study that examines several Swedish manufacturing companies by delving into their specific cases. A thematic analysis, document and literature review is presented, and the results indicate that Swedish manufacturing corporates want startups with technologies that boost digital transformation (AI, IoT, digital twins) to increase predictability, traceability, and optimization. They also want to increase sustainability initiatives in terms of both technologies and materials. This is followed by a framework for how a successful corporate-startupintegration should be done. The results from the study contribute to the work of improving collaboration between startups and corporates and the results from this study can help create economic benefits, promote social sustainability, and address environmental challenges more effectively.