SMEs, in particular, have challenges working purposefully with innovation and development, as this is in a continuous conflict with day-to-day operations. The innovation work is therefore often random and characterized by further development of existing product/production, or with technology suppliers setting the agenda. Traditionally, a distinction is made between stepwise/incremental and radical innovations. The latter involves creating new products, services, processes or mindsets (Generation Y) that can outdate existing ones (Generation X). Radical innovations require conceptual and long-term thinking, and often require large amounts of resources that make it challenging to succeed. Incremental innovations, often via further development/improvement of existing products and pro-duction systems, occur far more frequently, and the overall effect of gradual innovations can be significant. But the step-by-step innovations can be unstructured and do not necessarily contribute in a direction that ensures long-term competitiveness in relation to Generation Y. Through three different (but connected) pro-jects, we have approached different aspects of aiming to enable a more modular, but radical innovation process. This involves the development of solutions to concretize the future concepts for product/production through reference models, define the various innovation steps (modules), and solutions to follow up the path towards radical innovation (Generation Y).