Abstract
This article conceptualizes innovation as a process, where the scientific and industrial application of technological knowledge nurtures new routines and institutions, in order to relate changing business model innovations to innovation cascades. Innovation in science-based, high-tech sectors is changing its tempo, from the evolutionary pace of incremental novelties punctuated by occasional radical novelties, to innovation cascades. These cascades involve a long series of interlinked radical innovations, which can be traced through various scientific and technological indicators like patents and publications. Innovation cascades are relevant to industry, because they make the future less predictable. They are particularly interesting because these changes also enable the testing an abundance of new business models. Innovation cascades have a major impact on the number and sustainability of business models and on strategy. Business model innovations are visible not only in the existing organizations that undergo change, but also new organizational models appear. The case of biotechnology after the 1980s is used to illustrate our conceptualization.
Highlights
This article conceptualizes innovation as a process, where the scientific and industrial application of technological knowledge nurtures new routines and institutions, and in order to relate changing business model innovations to innovation cascades
Our focus is upon radical impacts of innovation cascades, in the science-based sectors, using the case of biotechnology to illustrate our conceptualization of the impact on business model innovations
Nosella et al (2005) found that different business models depend on the stages of the innovative process where they operate in Italian biotechnology; 1) Pharmaceutical companies working exclusively in the research market; 2) Integrated companies, which proceed from research to commercialization; 3) Companies which sell products to other biotechnology companies; 4) Firms that carry out industrial development in addition to manufacturing and commercialization; and Companies that produce and sell services.” (Nosella et al 2005)
Summary
This article conceptualizes innovation as a process, where the scientific and industrial application of technological knowledge nurtures new routines and institutions, and in order to relate changing business model innovations to innovation cascades. A new conceptualization is needed, because innovation in science-based, high-tech sectors is changing its tempo, from the evolutionary pace of incremental novelties punctuated by occasional radical novelties, to a new period characterized here as innovation cascades (Niosi 2016; McKelvey and Orsenigo 2006). These cascades involve a long series of interlinked radical innovations, which can be traced through various scientific and technological indicators like patents and publications. The conceptualization must include an understanding of how firms create value, with a particular emphasis on the resourcebased theory of the firm
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
