As a key driver of economic growth and social development, innovation has been examined at multiple levels of analysis, from national innovation systems to underpinning regional growth strategies, and as the basis for organisational performance and competitiveness (Marchese 2009; Lewis 2008; OECD 2009; OECD 2010a; OECD 2010b; Adams, Besant and Phelps 2006). Further, the scope of innovation is wide ranging from developing new products, processes and technologies, to creating new markets or administration systems such as business models or procedures (Van de Ven 1986; Markides 1997; Miller 2001). In addition, some innovations lead to the establishment of new entrepreneurial ventures or businesses which generate jobs, revenue, expertise and often public good (OECD 2010a). Innovation has been considered to be vital for firms of all sizes from large (Christensen and Raynor 2003), to small, medium and micro (Mazzarol and Reboud 2011; Munoz 2010). The focus in this chapter is to examine how innovation works in co-operative enterprises using a business model framework.
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