In today’s complex world, ecosystem is a common concept in both business strategy and societal development. But a business ecosystem and an innovation ecosystem are two fundamentally different ways of organizing collaboration with different drivers, actors and goals. Understanding these differences is crucial for both organizations and decision-makers.
Two types of ecosystems with different logics, different benefits
Business ecosystem: The business at the center
A business ecosystem is a network of companies that are mutually dependent on each other from a business perspective. It is about creating shared economic benefits, often through partnerships where each actor contributes to the business of other actors such as suppliers, distributors, customers or platform actors.
- Example: A company that develops an app can be part of Apple’s ecosystem via the App Store, where both make money.
- Logic: “You help my business, I help yours.”
Business ecosystems are often stable, but closed. Competitors are rarely included because they are fighting for the same customer.
Innovation Ecosystem: Exploration in Collaboration
In contrast, an innovation ecosystem is exploratory and knowledge-driven. Here, the goal is to jointly understand, learn, create or experiment, not necessarily to do business with each other. It is an environment where inspiration, idea exchange and collaboration are in focus.
- Example: Two competitors can participate in the same innovation network and inspire each other without directly collaborating commercially.
- Logic: “We don’t have to have the same goals, but we learn from each other’s journey.”
Innovation ecosystems are particularly well suited for:
- University-based collaborations
- Early-stage entrepreneurs
- Public sector
- Non-profit actors
- Regional development
But often benefit the business climate more and also more long-term than corporate ecosystems.
The benefits of innovation ecosystems
Innovation ecosystems offer significant value by creating environments where new ideas can develop faster thanks to collaboration between actors with different perspectives and skills.
Unlike traditional business relationships, these ecosystems are based on open dialogue rather than protected competition, which creates the conditions for creativity and innovation. By sharing insights and experiences without requiring immediate business benefit, a culture of mutual learning is created.
These ecosystems also enable shared access to experimental resources, such as labs and prototype environments, which makes it easier to test and develop ideas in the early stages. The knowledge generated circulates between participants, leading to continuous skills development.
In addition, innovation ecosystems can contribute to making changes, both technical and societal, more strategic and inclusive. This makes them particularly valuable in the development of solutions with high societal relevance where business benefit is not always the primary goal.
- Faster idea development thanks to interaction between different perspectives
- Open dialogue rather than protected competition
- Prototyping & test environments are created jointly
- Competence development through informal and formal meetings
- Strategic change becomes easier when collaborating across sectors
- Social benefit and sustainability are given greater space
Checklist: What needs to be in place for an innovation ecosystem to function?
- A common arena – physical or digital platform for dialogue and interaction
- Trust and transparency – actors share ideas without immediate business benefit
- An independent coordinating force – e.g. university, incubator, foundation
- Physical proximity – promotes quick meetings and spontaneous collaborations
- Resources for experimentation – access to labs, test beds, maker spaces
- Close to academia and research – new knowledge and young talent
- Access to investors and political decision-makers – opportunity to influence
- Tolerance for uncertainty – the realization that not all ideas lead to business
- Protection of innovation logic – someone who watches over the system not being commercialized too early
Regional benefit: Innovation ecosystems as a societal strategy
At regional and national levels, innovation ecosystems function as engines for future competitiveness. They contribute to the emergence of new companies and jobs in sectors that are crucial for the sustainable society of the future.
By bringing together academia, business and the public sector in joint projects, knowledge transfer and collaboration between different actors is facilitated. An environment is created where innovation does not only take place within the framework of commercial products, but also in societal areas such as healthcare, education, climate and democracy.
Innovation ecosystems also facilitate the development of a strong and vibrant innovation climate where ideas and expertise can flow freely between actors and across organizational boundaries. Once they are well-established, they become an important part of the long-term innovation capacity of a region or country.
When does it not work?
Despite their potential, innovation ecosystems can lose their power if faulty logics are allowed to dominate.
A common obstacle is that large actors start to exert power and block new ideas that threaten their position, which reduces openness and hinders development. Another problem arises when commercial interests are allowed to govern too early, so that the exploration of new ideas is replaced by short-term business logic. The functioning of the ecosystem can also become too dependent on individual enthusiasts or project leaders, making it vulnerable if these people disappear.
If the innovation environment becomes exclusive or characterized by low interaction, the network risks becoming passive and losing its value as a living place for collaboration. For innovation ecosystems to function, therefore, not only commitment is required, but also structures that protect and cherish the exploratory way of working.
In a sustainable innovation landscape, both business ecosystems and innovation ecosystems need to be allowed to exist, but they must not be confused. One is designed for the co-production of business value, the other for the co-development of ideas and societal value that in turn provides business value. Both are important. But awareness, independent leadership and a shared vision are required for innovation ecosystems to survive and flourish. Innovation ecosystems often create an attraction that brings in strong people with only a business interest, which causes the innovation ecosystem to change shape and lose its innovation strength.
