Market Convergence from a Start-up Perspective: the Case of Probiotics

Abstract Background The convergence of formerly distinct industries has been observed across a number of sectors including telecommunications, biopharma or nutrition. Its transformative character challenges incumbent market and industry structures by changing the way customers perceive products and technologies, forcing companies to restructure their offerings or even reshaping entire industry landscapes. Yet while the earlier stages, namely science and technology convergence, have received much attention, the later stages of convergence remain under-researched. Methods This study investigates the process of convergence at the market level. Building on the recent introduction of start-up formation at the transition from applied research to application within a technology life cycle, it explores the role of start-ups in the field of probiotics, spanning the convergent sectors of Nutrition, Pharmaceuticals and Cosmetics. The “LexisNexis” database is used to conduct a search of press releases on start-up formation, product launches and collaborations in the field of probiotics. Results Firstly, a classification of probiotic products originating from start-ups is developed. Secondly, a framework of collaborations in convergence is applied and extended to take account of collaboration forms present in start-ups distinguishing collaborations of different intensity and orientation. Conclusions The study expands the literature on convergence by offering an extension of the framework of collaborations in convergence. It further informs practitioners of the relevant markets occupied by start-ups in the probiotic field. Lastly, it offers guidance to practitioners on how to close technology and market competence gaps through collaborations with start-ups possessing respective complementary competences.