When might it make sense for an organization to promote internal venture creation?

If the company has plenty of innovative people in the ranks, and the issue is a lack of process to draw these ideas out of them, a way to allow them to allocate time to work on these ventures, and a way to continue to fund and support these new ventures as they mature, then rather than partnering with startups, the company might instead decide to stand up an innovation pipeline starting with an idea crowdsourcing campaign, then pick a number of teams to put them through some training and an accelerator program that culminates in a pitch event where they compete for continued funding and support.

This model works particularly well for organizations looking to promote innovation that serves a mixture of internal and external customers. For example, the International Monetary Fund's Innovation Unit organizes programs and activities that help employees develop solutions to solve problems both for their fellow economists, and for their counterparts in member countries.