Recognizing the need for innovativeness and achieving it are not the same thing; innovativeness requires both the identification and exploitation of opportunities (Schumpeter, 1939; Short et al, 2009). As part of this process, the context in which entrepreneurs operate and the innovative nature of the new venture is closely associated with how opportunities are formed; more specifically, whether they are discovered or created (Alvarez & Barney, 2007).Therefore, we conduct an exploratory study testing whether the theoretical foundations of the discovery and creation arguments can be linked to and differentiate among varying levels innovative contexts in which nascent entrepreneurs operate.