Technology push and demand pull perspectives in innovation studies: Current findings and future research directions

This study updates the debate on the sources of innovation. Using techniques like factor analysis, multidimensional scaling, and pathfinder analysis, we examine the most influential articles that have dealt with the topic. Our analysis provides three main findings. The first more precisely highlights the role of demand as a source of innovation. The second illustrates how competences enable firms to match technology with demand and capitalize on technology and demand as sources of innovation. The third unveils a distinction between external and internal sources of innovations. The sources of innovation can be purely external or internally generated competences that enable the firm to integrate external knowledge within its boundaries. Our work contributes to the classic debate by providing a more granular understanding of how technology and demand interact. In discussing our findings, we link our framework to strategy, innovation and entrepreneurship studies that expressly call for a better understanding of technology and demand factors in value creation and capture.

► Reviews and updates debate on demand pull and technology push innovation. ► Clarifies role of demand as a source of innovation and entrepreneurial opportunities. ► Highlights potential contingencies, both intrinsic and contextual, for leveraging demand and technology as sources of innovation. ► Illustrates centrality of interplay between knowledge, resources, capabilities and the external environment as a core aspect of technological innovation.