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Product owner should be business ...you decide what capabilities are required and when. Tech is a plus but not required ...though you should understand how development lifecycle works
Some companies (e.g. Facebook, Google, Microsoft) have product manager programs where it's like 2 years of hands on training for those coming into product management from a non-technical area.
Sometimes it’s better not to be so technical - it’s a different skill set
I work for a client PO who knew virtually nothing about the product we were building for him. That being said, he went through/goes through great efforts to have a better understanding of the technology we’re using.
"Traditional business background"???
Yes
Yes , everything is possible ...with the right connections and luck