How early-stage, deep-tech startups shape markets : Abzu and the new market category of ”Scientific AI”

Abstract

The primary aim of this Master's thesis is to explore how early-stage deep-tech startups engage in market shaping activities and strategies to overcome challenges associated with innovation commercialization, addressing a similar research question. This research underscores the critical importance of market shaping to gain a competitive edge in crowded markets. Using a single-case study approach, the research uses semi-structured interviews, participant observations, and field notes. Data analysis utilizes a multi-grounded theory approach and thematic analysis, presented in a narrative format. The study reveals that early-stage deep-tech startups significantly improve their market positioning through market shaping activities. Market shaping not only coexists with but also complements the commercialization process, addressing key challenges in innovation commercialization. The value proposition emerges as the central artifact, serving as the basis for defining a new market vision and related market representations. Market shaping is identified as a long-term strategy that can complement shorter-term initiatives like go to market strategies. Moreover, these activities evolve from small-scale efforts to more substantial actions as both the startup and the market mature. The findings extend an existing conceptual framework, offering novel insights into relational aspects of market shaping and the priorities for early-stage startups. The research provides practical guidance for startups based on their stage of development, credibility, and influence. Additionally, the study contributes to market shaping and innovation literature by broadening the empirical context and exploring feedback mechanisms.