Open innovation 2.0 for sustainability: the different way to implement business model innovation

This paper examines how startups and incumbent firms engage in Open Innovation 2.0 within innovation ecosystems to foster sustainability-oriented business model innovation. Despite the increasing importance of open innovation in driving sustainable transitions, the specific pathways adopted by different types of firms remain underexplored. The study addresses the following research question: How do startups and incumbent firms engage in Open Innovation 2.0 to foster sustainability? Using a multiple-case study methodology, we analyzed seven Italian benefit corporations, consisting of three startups and four incumbent firms, to identify distinct sustainable open innovation patterns. Our findings reveal that startups and incumbents adopt notably different approaches. Startups primarily follow two distinct patterns: (1) Corporate Venture Capital (CVC)-driven sustainable innovation, where corporate venture capitalists support and orchestrate startup-driven sustainability initiatives by providing critical resources and strategic guidance; and (2) Pro-social innovation, in which social incubators facilitate ecosystem based sustainable business development through active knowledge-sharing and stakeholder engagement. Conversely, incumbents pursue two alternative patterns: (3) Innovability, characterized by the integration of sustainability and innovation within structured collaborative frameworks aimed at maintaining competitive advantage; and (4) Industrial symbiosis innovation, emphasizing interorganizational resource exchange and circular value creation within the innovation ecosystem. This study contributes to the literature by clarifying how startups and incumbent firms pursue sustainability through leveraging innovation ecosystems, highlighting differences in governance mechanisms, relationships, and value creation processes. By distinguishing between startup-driven and incumbent-driven mechanisms, the research emphasizes how governance structures, collaborative dynamics, and value creation processes differ according to the type of firm involved. From a managerial perspective, the study provides valuable insights into how diverse firms can effectively leverage open innovation ecosystems to enhance sustainable innovation.