A community for innovators
Optimizing ecosystem configuration
and governance with an ecology lens
Is the ecosystem metaphor just a rebranding for technology clusters, innovation networks or are there actual, important differences between clusters, networks and novel forms of organizing innovation that can be captured by using an ecology lens? After all, highly regarded innovation scholars (Ritala and Alm, 2017) have written articles "in defense of the 'eco' in innovation ecosystems". The figure below highlights some of the benefits of an ecology lens in innovation ecosystems research. The figure also shows that while the number of Management or Business studies that use the term "Ecosystem" has increased significantly in the last decade, the presence of an "ecology lens" is low when compared to ecosystem research outside of the Management or Business fields.
A small collection of research has explored the utility of an ecology lens in supporting the innovators' task of shaping the configuration and governance of the dynamic, evolving array of actors (e.g. businesses, universities, investors, governments) who interact within a shared environment. Notable examples are (in the opinion of the creators of this community) the exquisite research articles by Shaw and Allen (2018) and Dedehaydir et al (2018) in the journal Technological Forecasting and Social Change. More recently, Primus (2024) presented his ongoing research project that employs an ecology lens at the ISPIM (International Society of Professional Innovation Managers) conference in Osaka, Japan. The abstract reads as follows:
Driven by a considerable shift in how innovation activities are organized and understood, the ecosystem perspective has garnered increasing attention in innovation management literature in recent years. Innovation ecosystems are characterized by loose contractual structures, distributed value creation and governance, as well as integrating and aligning different yet interrelated technological components towards a shared purpose (Ritala and Thomas, 2025; Baldwin et al, 2024). While the frequency of using the ecosystem metaphor has increased significantly in innovation research and practice, the principles of natural ecology have been underutilized in the analysis of and prescriptions for innovation ecosystems (Oh et al, 2016). This research project aims to generate novel insights that inform practice and theory on ecosystem configuration and governance going beyond physical, contractual and influence attributes of networked relationships, as well as location-based economic factors of the system. Building and maintaining a prosperous innovation ecosystem presents significant challenges, comparable to natural ecosystems. Recent practitioner studies suggest that many ecosystems fail because of the wrong ecosystem configuration or poor government choices about membership (Pidun et al, 2020). In a hermeneutic circle, this project follows the evolution of the parts (microscopic) and the whole (telescopic) of several ecosystems surrounding digital innovations. Tracking ecosystem evolution from minimum viable ecosystem to climax community, ecosystems’ relationships are examined based on sub-types of symbiosis and ecosystems’ properties are measured via function, condition and resilience indicators. The first findings include novel insights into ecosystem vulnerabilities, relationship optimization, and pathways of value units. Unexpected insights highlight new ways of understanding competitive landscapes, regulatory challenges, and technological disruption risks. Additionally, the data suggests that contributing to ecosystem diversity and maintaining positive symbiotic relationships can elevate the legitimacy and stability of a nascent business in the ecosystem.
As Primus' (2024) abstract suggests that the optimization of specific relationships within an innovation ecosystem can be supported by a thorough understanding of how value units, such as financial resources or data, flow through the system. The image below illustrates how the idea of pathways of value units (e.g. data flow; patterns of sharing technological resources) can be employed to map a minimum viable ecosystem (MVE). The example is based on the emerging innovation ecosystem for a novel drug response monitoring technology.
An ecology lens can also generate valuable insights about innovation systems when system-level indicators of function, condition and resilience - in other words, ecosystem health indicators - are used for examination. In addition, an ecology lens can provide a deeper understanding of specific relationships between ecosystem participants as well as the totality of relationships within the system. The following image suggests a selection of health indicators and relationship indicators that can be employed to address questions about the balance of relationships, as well as the overall health of an innovation ecosystem.
Enjoy using an ecology lens and provide any feedback, ideas and/or insights, to djp@innovation-matters.info !
References:
Dedehayir, O., Mäkinen, S.J. and Ortt, J.R., 2018. Roles during innovation ecosystem genesis: A literature review. Technological Forecasting and Social Change, 136, pp.18-29.
Shaw, D.R. and Allen, T., 2018. Studying innovation ecosystems using ecology theory. Technological Forecasting and Social Change, 136, pp.88-102.
Primus, D.J., 2024. Being telescopic and microscopic at the same time: optimizing ecosystem configuration and governance with an ecology lens. ISPIM connects Osaka conference. December 2024. https://www.researchgate.net/publication/386874494_Being_telescopic_and_microscopic_at_the_same_time_optimizing_ecosystem_configuration_and_governance_with_an_ecology_lens