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This article is from on‐going research into how firms develop new technologies for new markets, particularly markets for medical and bio‐ technologies. The research is exploring the view that in “innovating” a new product a firm will not just be developing some new technology, that is engaging in Research and Development. Innovation also involves the firm in actively trying to create new markets as well. Indeed innovation means “moulding” both the product and the market at the same time. Shaping a new technology and shaping a new market go together.

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