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Scientific Essay from the year 2014 in the subject Economics - Innovation economics, grade: 4-th year of PhD, Saint-Petersburg State University of Economics, language: English, abstract: In the article it is asserted that business model innovation potential has not yet been fully released first because of a lack of business model definition and a consistent methodological framework, second because, on a more general plan, the whole system of assumptions on which innovation activity of this kind has been based possibly needs re-evaluation. It is argued that a change of theoretical foundation is needed because of systemic inconsistencies which impede present approaches application. It is assumed that difficulties arise due to peculiarities of mainstream economics framework upon which these approaches have implicitly been built. While authors of neoclassical approaches admit outside factors influence on the business model, these factors remain conceptually isolated from the businessmodel. To overcome this problem there has been suggested a framework for business model innovation based on the evolutionary economic theory. The evolutionary approach to business model innovation is characterised by focus on processes of long-term change and economic agents cause-effect relationship. It is being realised by reference to the evolutionary process that has moulded stable patterns of behaviour of companies on a chosen market. By this reference a trajectory of development of value perception and principles of value creation or business models can be traced and understood, since relationship between routines, value, and business models are mutually dependent. Generalised principles of value creation or basic business models of a market in question are to be adjusted to particular circumstances of an
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