Understanding Innovation Ecosystems

In today’s changing and globalized world innovation ecosystems have become drivers of economic growth and competitive advantage. These ecosystems facilitate collaboration, knowledge sharing and technological advancements, among businesses. Scholars and practitioners have increasingly focused on understanding the concept of innovation ecosystems as they play a role in the survival and growth of firms in the technology driven economy. Companies rely on product innovation to access markets and opportunities leading them to prioritize searches for innovative ideas. To create value in business landscape, industries are now emphasizing the importance of fostering ecosystems that promote collaboration among companies. This literature review aims to synthesize existing research on the innovation ecosystems with a focus on open innovation and value creation. By examining frameworks, empirical studies, and practical insights this article offers a comprehensive overview of the mechanisms, challenges and opportunities that shape these ecosystems. It also highlights the roles played by networks, regulatory frameworks and organizational capabilities in driving innovation led growth and sustainable development, within dynamic and interconnected innovation ecosystems. Received: 19 February 2024 / Accepted: 15 March 2024 / Published: 23 March 2024