The objective of our research is to analyze the forms and specific characteristics of co-evolution process between incumbents and new entrepreneurial firms in the context of IoT technologies. Our research is explorative in nature and aims to build a picture of start-up and incumbent firms involved in the development and exploitation of IoT technologies. Our research design follows a two steps approach. The first step, mainly based on secondary data aims to build, at an Italian and International level, a database of start-ups with technologies and competences applicable to the IoT sector. In the second step, we will analyze strategies and initiatives promoted by old companies to integrate competences and technologies developed by start-ups. The research, focusing on the dynamics of interaction and co-evolution among different actors, puts in evidence the different roles played by start-up and incumbent firms in the birth and evolution of emerging sector. In particular, according to more recent studies, our research shows that sometimes the relationship between new and old firms is more complex and it goes beyond the traditional paradigm, now widely accepted in the established literature on the subject, were old firms are replaced by new comers. The implications of the paper are twofold: theoretical and managerial. From the theoretical point of view, our research could contribute to the theory on the forces and actors that drive the transformation of economic sectors. From the managerial point of view, our research has important implication for policy makers and for the definition of adequate policies to stimulate the development of the IoT technologies. At the same time, our research could have relevant implications for the management of new and old firms involved in IoT industry, showing the necessity for them to adopt a more open approach in their innovation processes.