David Teece is a global science leader in his field of economics and business. His new paradigm for understanding market firms introduced the role of ‘dynamic capabilities’ in driving entrepreneurial innovation and commercial success. In 1937, Ronald Coase posed a foundational question in the field of economics: why do market firms exist? In that tradition, Teece introduced a new paradigm that conceptualises firms as institutions that sustain capabilities: ‘operational capabilities’, needed for achieving efficiencies, and (more importantly) ‘dynamic capabilities’, which drive innovation. He introduced key elements of his emerging theory in a series of articles in the 1980s and early 1990s that turned the neoclassical conceptualisation of the firm on its head, and identified complementary assets (including different forms of knowledge) as essential for understanding competitive success in business enterprises. Teece’s major advance occurred in 1997, with ‘Dynamic capabilities and strategic management’, published in the Strategic Management Journal. This article is one of the most cited papers in economics and business. Teece has an outstanding record of science achievement, which has led to a string of global honours recognising his leadership.