Early-stage business models for commercializing university technology in the cleantech industry

Commercializing new technology requires business models that respond to a myriad of challenges and market needs. However, limited attention has been paid to understanding how early-stage business models are developed to commercialize new university technology. This research examines how university spinoffs (USOs) develop early-stage business models to commercialize new technology for the cleantech industry. To achieve this, an in-depth case study of cleantech USOs in the UK was performed. Business model innovation and the concept of effectual logic were adopted to inform the investigation. The findings suggest that USOs develop early-stage business models through three interlocking mechanisms: flow-field control; pragmatic kinesis; and deliberate temperament that matches the components of the business model, namely, value proposition and value creation, value capture and value network respectively. The research also advances a model by highlighting the importance of managing contradictions (i.e., create markets, manage affordable loss, and forge partnerships while embracing contingencies) as a framework for developing early-stage business models. The findings advance our understanding of early-stage business model development for commercializing university technology with implications for theory and entrepreneurs.