The global shoe giant, Nike, is setting up a venture capital firm to backup startups that focus on alternative energies and efficient manufacturing. Nike will use the technologies to position itself as customers become more environmentally aware and cost pressure requires the invention of new manufacturing processes that are cost-competitive. So, this will help Nike to be more sustainable and cheaper if these companies come up with the right technologies.
Nike is borrowing an idea from many technology companies that are opening venture funds to jumpstart new firms for new ideas that will drive innovation. AOL has that and many other firms are doing that also. This is the sign of the time as hiring and running internal R&D have become very expensive and companies have no option than spreading the little they have to generate new ideas and innovation. Nike has called this offshoot Sustainable Business & Innovation Lab and hopes to make investment soon.