Radical and systematic innovations are the need of the hour for sustainable development. These innovations could be efficiently created and effectively studied while building on concept of business models which provide firms for creating a holistic structure to envisage and put into practice sustainable innovations. Such concepts give an analytic tool for researchers, allowing them to appraise the relationship between the different aspects that firms hitch together to create ecological, economic, and social value. Moreover, the concept of business model gives a link between the individual firm and bigger productions and consumption system in which it operates. This study offers insights into the promise of the business model concept for understanding and advancing sustainable innovation. The study brings out the definition of sustainable innovations and business models and then summarizes how sustainable business models are linked to innovation research. Finally, this study leads to fruitful discussion on how sustainable innovation links to competitiveness at different systemic levels.

Keywords: Sustainable Development, Sustainable Business Models, Radical and Systemic Innovations, Sustainable Innovation, Consumption System, Sustainability, Competitiveness.