ABSTRACT
This chapter explores how new ventures develop Product-Service Systems (PSS) innovations that contribute to sustainability and to investigate the role of design in this process. The innovation process might unfold in various fashions depending on the level of uncertainty involved in respect to the technology and market. The chapter aims at explaining why 'design-inspired effectuation' is a suitable approach in developing product and PSS innovations in an entrepreneurial context. It illustrates the role of design iterations within the model of effectuation and explains why design-inspired effectuation might be a suitable approach to developing PSS innovations. In addition to the goal-driven product and PSS methodologies, effectuation offers an alternative approach to be considered when developing sustainable products and services. Within the context of product innovation, as well PSS innovation, when developing new businesses, entrepreneurs not only go through a cycle of stakeholder interactions, but also a cycle of design iterations.
