Innovation studies have largely recognized the role of knowledge in fostering innovation and growth of entrants. Previous literature has focused on entrepreneurial and managerial capabilities and education and knowledge incorporated in material and immaterial resources. We assume that new firms...

In this paper we propose a new mental representation of how markets, technology and their interaction concur in explaining the why of a certain innovation instead of another. We empirically test this theory in the telecommunication switches industry. We consider innovation as a new alignment of...