How startups create new knowledge that spark disruptive innovations

Abstract Startups play a crucial role in driving disruptive innovation by creating and introducing radically new knowledge that challenges established incumbents and reshapes industries. This article examines the key factors that influence startups' radical knowledge creation, focusing on underlying mechanisms that provide a strategic advantage. By integrating multiple frameworks—creative destruction, disruptive innovation, Blue Ocean, human capital, social networks, and entrepreneurial cognition—the article contributes to the knowledge‐based view (KBV) of the firm. It offers insights into the dynamic interplay between market and firm‐related forces that promote radical knowledge creation, fueling discovery and disruptive innovation. The findings enhance our understanding of how startups leverage both internal and external resources to generate groundbreaking ideas and transform industries.