This chapter is about a large-scale process industry where innovations have characteristics that are not well represented in the innovation management literature and where the transformation is related to technology shifts as well as changing business models. This industry located in the Northern hemisphere is trying to transform due to new market conditions, and to introduce new bioproducts based on woody biomass. In the following analysis inspired by the Swedish economist Erik Dahmén, I introduce the concept “diverging innovation” to the established toolbox of innovation analyses, arguing that this concept in general is useful for the analyses of process industries, and – in particular for the development block of wood-based biorefining - i.e. a set of diverging innovations of non-assembled products resulting in a renewal of industries. I will argue that understanding the nature of innovation in process industries have profound policy and management implications.