As an experienced corporate executive, entrepreneur and investor, I often advise corporations on accelerating their growth. This is a common challenge for companies around the globe. These companies may be using previous generation technology and, unfortunately, traditional Research and Development (R&D) efforts are often ineffective in developing innovative ideas. Corporations sometimes collaborate with universities on joint technology projects. However, such partnerships usually produce results very slowly in today's fast-paced business environment.

I believe the secret to accelerating corporate growth is to become more innovative. While it is possible to innovate internally, organizations that attempt to do so fail more often than they succeed. It is inherently challenging to ask corporate employees think like a startup founder. Instead, I recommend that corporations become more innovative by investing in startups, which allows the corporation to grow faster. Since the startup ecosystem is constantly developing innovative ideas, investing in startups is the fastest and most cost-effective way to grow.

Related: Startups and corporations: A symbiotic relationship

Capitalizing on global startup competitions

Initial competitions are growing worldwide. Participating in them – whether that means attending, speaking or judging – offers corporations a chance to connect with innovative startup founders. In doing so, they can build relationships, learn market knowledge, discover innovative technologies and gain access to talent. Together, such opportunities will help corporations become more innovative and grow quickly. Since startup competitions bring together the best companies from around the world in one place, this is an effective way to meet many of them in a short time frame.

Today, it is typical that large conferences—such as TechCrunch Disrupt, Start Grind, Dublin Tech SummitAND Web Summit — host startup competitions at their events. Universities also host business plan competitions, often for startups that are already generating revenue while their founders are still in school. There are also competitions dedicated to startups such as Startup World Cupwhich hosts over 100 regional races around the globe. It culminates in a grand finale event where the winner receives an investment prize of $1 million. All these types of events are strong networking opportunities as they are attended by startups, corporations, investors and the media.

How corporations benefit from startup competitions

Let's examine specific ways corporations can get the most out of startup competitions. As a starting point, corporations should look for startups that align with their strategic direction and business objectives. Corporations can use these contests to initiate partnerships designed to help both parties grow. As these partnerships develop, corporations can assess whether they should invest in the startups they partner with.

Startup competitions also serve as a testing ground for new technologies and innovative ideas. There are usually strict criteria for participating in these competitions, so once a corporate manager or executive decides to participate, they can be sure that only the best ideas are being presented. I believe it is a good idea for corporations to look for startup technologies that complement their own technology so that the two companies can work together to grow in a mutually beneficial way.

Another way corporations can benefit from participating in startup competitions is to use the event to understand market trends. Corporations should consider what new technologies are being developed and what customer challenges startups are trying to solve. This helps determine which startups are most important for a corporation to become more competitive. Another opportunity that startup competitions offer is the opportunity for corporations to look at new talent. Usually well-educated and creative people are the ones who participate in these competitions. Corporations can grow their networks and may even be able to hire initial employees from these events.

The role of corporate venture capital

Beyond networking and partnering, I recommend that corporations consider investing in startups to become more innovative. In startup competitions, they can meet founders and discover new technology. They can then invest with the help of a venture capital (VC) partner. Although a corporation can create an inward investment organization, doing so is difficult and expensive. Hiring VC professionals who want to work in a corporate environment is also difficult. An alternative model is Venture capital-as-a-service (VCaaS), which means aligning with a VC firm to invest on behalf of the corporation.

Corporations using the VCaaS model invest based on budget, timeline and strategic objectives. VCaaS offers a high level of flexibility and benefits corporations as the VC firm finds startups with innovative technologies and performs due diligence. This ensures that an investment is mutually beneficial.

Related: Corporate Innovation Through Effective Startup Investment

Startup competitions do an incredible job of attracting the best tech ideas and founders from around the world. These events allow startups to share their expertise, technology and ideas. They can also use these competitions to meet new partners and investors. Ultimately, this will help startups and their corporate partners reach new customers and markets, growing faster than they would otherwise.