The early stage of radical innovation is characterised by uncertainty, data overload and often high rates of change. Schumpeter’s ‘creative destruction’ view of innovation is now exacerbated by ‘hypercompetition’ (D'Aveni, 1999), a theory that describers the increasing rate and intensity of change in modern markets. In the design and strategy literature, design thinking is often positioned as an appropriate mediator of radical innovation in these circumstances, by facilitating interpretation of market uncertainties and moderating organisational behaviours. At its inception radical innovation is determined largely by the cognitive behaviour of the actors involved, often semi-consciously. In this study we set out to distinguish design thinking from analytical thinking and investigate the suitability of both for the effective early stage formation of radical innovation concepts. Additionally, whereas design thinking literature mostly investigates and reports on the benefits of its application, we seek to understand where design thinking’s limitations lie and where it may be better replaced by other forms of cognition. This paper reports at an interim stage of a continuing study. It provides a comprehensive review of relevant literature and a qualitative exploration of two successful innovating SME firms. A framework is given for a novel experimental protocol that will be used in the next stage of the larger study.