A Research On The Interaction Mechanism Between Technical Innovation And Business Model Innovation Of Technology Start-UPS

Technical innovation is undoubtedly one of the most important impetuses advancing economic development as well as enterprise value growth. Governments and enterprises in different countries input large amounts of funds and human powers in research and development concerning innovative and high technologies; however, technical innovation itself cannot guarantee commercial success for enterprises. It is indicated in many studies that new technical development (characteristic) in an enterprise poses impacts on the design and selection of business models. Yet, an established and well-formed business model would in return impact following tracks of technical development and facilitate technical innovation. A theoretical consensus can be reached from numerous theoretical studies that technical innovation is closely related with business model innovation and that the former pose significant impact on the later. However, existing studies are relatively simple, mostly focusing on one direction, without studying impacts on business models from different dimensions as well as from multiple elements. Also, there is less studies focusing on how business model innovation influencing technical innovation. Therefore, analysis and discussing on the interaction is one of the most important tasks to be solved nowadays.Three important properties, exclusiveness, destructiveness and openness, are identified and defined in this paper. A coupling management model of technical innovation and business model is constructed, case analysis is adopted and three cases are encoded and summarized in combination with sorting-out of theories and summarization of practical experience to dissect the natures and the intensities of the impacts posed by the abovementioned three properties on the design (selection) of business model in pioneering enterprises. Meanwhile, how the selection of business model in technical pioneering enterprises affects decisions concerning technical tracks of enterprises is discussed to better explore the interaction between technical innovation and business model innovation.In this paper, technical innovation and business model in new starting enterprises are integrated into a unified analytical framework to achieve comprehensive and systemic theoretical explanation and prediction on the mechanism of the interaction between new technologies (properties) and business model (character) in new starting enterprises. There are two conclusions drawn that different technological properties pose diversified impacts on characters of business models and that there is a re-action mechanism of business model innovation on technological innovation. In addition, practical experience in example enterprises is summarized to facilitate the technology property-based design and selection of business model in technologically innovative enterprises in China and to endow theoretical information more practical and guiding significance.