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Co-creation is an essential aspect of organizational agility enabling organizations to gain digital innovation capabilities, such as support in developing critical peripheral services or attracting talents and investors. Co-creation is especially essential for startups because of their limited resources. It fosters organizations to learn and innovate across company boundaries to remain competitive. Little is known about how startups apply co-creation to support their digital innovation initiatives. This paper presents a qualitative study of eight automotive startups, based on 22 semi-structured interviews. We applied the prediction and control framework as an analytic lens and identified three key advantages of co-creation. Embracing co-creation in ecosystems increases startups' resource capacity and speed for digital innovation. We concluded that automotive startups that apply visionary and transformative logic were found to have a better ability to lead digital innovation in a controlled way and attract wanted talents and actors.



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