Bouncing forward better – micro-foundations of combinatorial innovation

Abstract

This article theoretically investigates the conditions that empower actors (entrepreneurs and intrapreneurs) to pursue combinatorial innovation processes, and thereby contribute to transformative activities with a high degree of novelty and complexity. We argue that the possibility for combinatorial innovation depends on agents’ time perspective and combinatorial capabilities. We elaborate why institutional incentive structures and knowledge bases condition actors’ time perspective and why network structures and firm routines condition actors’ combinatorial capabilities. We illustrate our arguments with examples and show their practical relevance for policy and innovative actors.