Seminar paper from the year 2020 in the subject Economics - Innovation economics, grade: A, Lund University, language: English, abstract: The following piece will analyze Karma's driving forces and how clusters in the Swedish national innovation system (NTS) have allowed for Karma to flourish as an eco-innovation. Tn addition, this piece will investigate how the growth of these innovation clusters is related to cross-clustering, the close-knit interconnectedness between Stockholm's clusters. 142,000 tonnes of food waste was generated in Sweden in 2012, equivalent to 15 kg per person. At the same time, the food industry is accountable for approximately 8% of global greenhouse emissions. Although conflicting numbers on both global and regional food waste data exist, it is crystal clear that food waste is a crucial problem. Karma, a youthful start-up that focuses on turning surplus food into a business opportunity, was founded in the heart of Stockholm in 2016. The sustainable business model builds upon turning soon-to-be expired food into profit, allowing for partnering businesses to catch an additional revenue stream. A connection between consumers and businesses has been solidified through technological solutions, with one of the world's largest issues in mind; food waste.