Dominant business models of young firms in the renewable energy sector

Abstract

This paper focuses on the behaviour of new technology-intensive firms (NTIFs) in the process of developing research-based renewable energy technologies, and introducing them into the market, thus contributing to the transition to a low carbon regime. We adopt a business model framework to study value creation by NTIFs, taking into account the context, where obstacles and opportunities impact the action and outcomes of the companies. The framework is applied to a group of 28 Portuguese NTIFs in several renewable energy areas, trying to identify the main business models adopted by them. Results reveal the existence of different business models in the exploitation of renewable energy technologies by these firms. They also reveal that companies adopting different business models perceive differently the context where they operate, namely in terms of obstacles and opportunities assessment. These results are expected to contribute to further knowledge about the business models, which are emerging in this highly innovative new sector, giving insights into the strategies deployed by NTIFs exploiting the new energy technologies associated with the regime shift, and thus contributing to strategy and policy formulation aiming at developing the renewable energy sector.