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11 types of innovation in business models

The need for new business models is a hot topic, not only in Europe but also worldwide. Emerging markets for greener products and the rise of sustainability are gaining momentum and thus are leading firms to integrate innovation into their decision-making processes. Innovation aims to create both economic and environmental value, by replacing old practices. It allows companies to restructure their value chain and generate new relationships with the customer. In a report on business model innovation, Henry Chesbrough, Executive Director of the Center for Open Innovation at the University of California, Berkeley, notes that, “Today, innovation must include business models, rather than just technology and R&D” (p. 12). The role of innovation is fundamental in order to grow towards sustainability and not become obsolete.

For the Horizon 2020 European project ENTRUST, LGI has studied the roots of innovation behind new business models, across four different sectors (energy production, urban mobility, manufacturing, and buildings). LGI has categorised 11 types of innovation that boost business models in these sectors in the infographic below.

180124_SM Eleven types of innovations in business models

The ENTRUST project focuses on Europe’s energy system in terms of how human behaviour is shaped by both technological and socio-demographic factors. LGI’s task deals particularly with the novel business models emerging in Europe that are encouraging the energy system to move towards a more sustainable era. The roles of gender, energy citizenship, and community engagement tools are also explored.

If you would like to learn more about this topic, visit the project’s website and check out our deliverable on innovation in business models.

Soraya-blogSoraya Molinero
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The views and opinions expressed in this blogpost are solely those of the original author(s) and/or contributor(s). These views and opinions do not necessarily represent those of LGI or the totality of its staff.