IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v173y2021ics0040162521005394.html
   My bibliography  Save this article

Transformative governance of innovation ecosystems

Author

Listed:
  • Könnölä, Totti
  • Eloranta, Ville
  • Turunen, Taija
  • Salo, Ahti

Abstract

Transformative innovation policy has recently emerged at the intersection of innovation and socio-technical transition research. It has provided valuable heuristics to guide policy; but it has also led to the recognition of major challenges in the management of uncertainty and complexity. In this paper, we address these challenges by linking transformative innovation policy with research perspectives from (i) complex adaptive systems, (ii) ecosystems, and (iii) adaptive and participatory governance. Specifically, we develop a conceptual framework for transformative governance, which seeks to improve the adaptiveness and resilience of the ecosystem and orchestrates socio-technical transformation based on the balanced presence of diversity, connectivity, polycentricity, redundancy and directionality. We also present an illustrative example by applying the framework to a Finnish policy reform in which the lack of balanced attention to the ecosystem features catalysed major shortcomings in an emerging innovation mobility ecosystem. Finally, we explore the implications for the design of individual policies and policy mixes which arise from the recognition of complexity and the holistic policy impacts on the ecosystem and society at large.

Suggested Citation

  • Könnölä, Totti & Eloranta, Ville & Turunen, Taija & Salo, Ahti, 2021. "Transformative governance of innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    • Handle: RePEc:eee:tefoso:v:173:y:2021:i:c:s0040162521005394
    DOI: 10.1016/j.techfore.2021.121106
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162521005394
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2021.121106?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Low, Bobbi & Costanza, Robert & Ostrom, Elinor & Wilson, James & Simon, Carl P., 1999. "Human-ecosystem interactions: a dynamic integrated model," Ecological Economics, Elsevier, vol. 31(2), pages 227-242, November.
    2. Weber, K. Matthias & Rohracher, Harald, 2012. "Legitimizing research, technology and innovation policies for transformative change," Research Policy, Elsevier, vol. 41(6), pages 1037-1047.
    3. Bengt-Åke Lundvall, 2007. "National Innovation Systems—Analytical Concept and Development Tool," Industry and Innovation, Taylor & Francis Journals, vol. 14(1), pages 95-119.
    4. Kaplan, Sarah & Tripsas, Mary, 2008. "Thinking about technology: Applying a cognitive lens to technical change," Research Policy, Elsevier, vol. 37(5), pages 790-805, June.
    5. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    6. Zoltán J. Ács & Erkko Autio & László Szerb, 2015. "National Systems of Entrepreneurship: Measurement issues and policy implications," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 28, pages 523-541, Edward Elgar Publishing.
    7. Johan Schot & Laur Kanger, 2016. "Deep Transitions: Emergence, Acceleration, Stabilization and Directionality," SPRU Working Paper Series 2016-15, SPRU - Science Policy Research Unit, University of Sussex Business School.
    8. Ron Adner & Rahul Kapoor, 2016. "Innovation ecosystems and the pace of substitution: Re-examining technology S-curves," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 625-648, April.
    9. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    10. Orsenigo, L. & Pammolli, F. & Riccaboni, Massimo, 2001. "Technological change and network dynamics: Lessons from the pharmaceutical industry," Research Policy, Elsevier, vol. 30(3), pages 485-508, March.
    11. Jeroen Content & Koen Frenken, 2016. "Related variety and economic development: a literature review," European Planning Studies, Taylor & Francis Journals, vol. 24(12), pages 2097-2112, December.
    12. Philip Anderson, 1999. "Perspective: Complexity Theory and Organization Science," Organization Science, INFORMS, vol. 10(3), pages 216-232, June.
    13. Mariana Mazzucato, 2016. "From market fixing to market-creating: a new framework for innovation policy," Industry and Innovation, Taylor & Francis Journals, vol. 23(2), pages 140-156, February.
    14. Österblom, H. & Gårdmark, A. & Bergström, L. & Müller-Karulis, B. & Folke, C. & Lindegren, M. & Casini, M. & Olsson, P. & Diekmann, R. & Blenckner, T. & Humborg, C. & Möllmann, C., 2010. "Making the ecosystem approach operational--Can regime shifts in ecological- and governance systems facilitate the transition?," Marine Policy, Elsevier, vol. 34(6), pages 1290-1299, November.
    15. Wiegmann, Paul Moritz & de Vries, Henk J. & Blind, Knut, 2017. "Multi-mode standardisation: A critical review and a research agenda," Research Policy, Elsevier, vol. 46(8), pages 1370-1386.
    16. Unruh, Gregory C., 2000. "Understanding carbon lock-in," Energy Policy, Elsevier, vol. 28(12), pages 817-830, October.
    17. Dosi, Giovanni & Grazzi, Marco & Mathew, Nanditha, 2017. "The cost-quantity relations and the diverse patterns of “learning by doing”: Evidence from India," Research Policy, Elsevier, vol. 46(10), pages 1873-1886.
    18. Scaringella, Laurent & Radziwon, Agnieszka, 2018. "Innovation, entrepreneurial, knowledge, and business ecosystems: Old wine in new bottles?," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 59-87.
    19. Lopolito, A. & Morone, P. & Taylor, R., 2013. "Emerging innovation niches: An agent based model," Research Policy, Elsevier, vol. 42(6), pages 1225-1238.
    20. Guan, Jiancheng & Zhang, Jingjing & Yan, Yan, 2015. "The impact of multilevel networks on innovation," Research Policy, Elsevier, vol. 44(3), pages 545-559.
    21. Pombo-Juárez, Laura & Könnölä, Totti & Miles, Ian & Saritas, Ozcan & Schartinger, Doris & Amanatidou, Effie & Giesecke, Susanne, 2017. "Wiring up multiple layers of innovation ecosystems: Contemplations from Personal Health Systems Foresight," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 278-288.
    22. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    23. Nelson, Richard R. & Winter, Sidney G., 1993. "In search of useful theory of innovation," Research Policy, Elsevier, vol. 22(2), pages 108-108, April.
    24. Colin Mason & Ross Brown, 2013. "Creating good public policy to support high-growth firms," Small Business Economics, Springer, vol. 40(2), pages 211-225, February.
    25. Rogge, Karoline S. & Reichardt, Kristin, 2016. "Policy mixes for sustainability transitions: An extended concept and framework for analysis," Research Policy, Elsevier, vol. 45(8), pages 1620-1635.
    26. Bunge, Mario, 2000. "Systemism: the alternative to individualism and holism," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(2), pages 147-157.
    27. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    28. Vasconcelos Gomes, Leonardo Augusto de & Salerno, Mario Sergio & Phaal, Robert & Probert, David R., 2018. "How entrepreneurs manage collective uncertainties in innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 164-185.
    29. Panzar, John C & Willig, Robert D, 1981. "Economies of Scope," American Economic Review, American Economic Association, vol. 71(2), pages 268-272, May.
    30. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    31. Bauer, Johannes M., 2014. "Platforms, systems competition, and innovation: Reassessing the foundations of communications policy," Telecommunications Policy, Elsevier, vol. 38(8), pages 662-673.
    32. Garcia-Swartz, Daniel D. & Garcia-Vicente, Florencia, 2015. "Network effects on the iPhone platform: An empirical examination," Telecommunications Policy, Elsevier, vol. 39(10), pages 877-895.
    33. Hung, Shih-Chang & Tu, Min-Fen, 2014. "Is small actually big? The chaos of technological change," Research Policy, Elsevier, vol. 43(7), pages 1227-1238.
    34. Smith, Adrian & Stirling, Andy & Berkhout, Frans, 2005. "The governance of sustainable socio-technical transitions," Research Policy, Elsevier, vol. 34(10), pages 1491-1510, December.
    35. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    36. Luz E. Bohórquez Arévaloa & Angela Espinosa, 2015. "Theoretical approaches to managing complexity in organizations: A comparative analysis," Estudios Gerenciales, Universidad Icesi, January.
    37. Dietmar Braun, 2008. "Lessons on the political coordination of knowledge and innovation policies," Science and Public Policy, Oxford University Press, vol. 35(4), pages 289-298, May.
    38. Carlsson, Bo & Jacobsson, Staffan & Holmen, Magnus & Rickne, Annika, 2002. "Innovation systems: analytical and methodological issues," Research Policy, Elsevier, vol. 31(2), pages 233-245, February.
    39. Østergaard, Christian R. & Timmermans, Bram & Kristinsson, Kari, 2011. "Does a different view create something new? The effect of employee diversity on innovation," Research Policy, Elsevier, vol. 40(3), pages 500-509, April.
    40. Kim, Dong-hyu & Lee, Heejin & Kwak, Jooyoung, 2017. "Standards as a driving force that influences emerging technological trajectories in the converging world of the Internet and things: An investigation of the M2M/IoT patent network," Research Policy, Elsevier, vol. 46(7), pages 1234-1254.
    41. Kash, Don E. & Rycoft, Robert W., 2000. "Patterns of innovating complex technologies: a framework for adaptive network strategies," Research Policy, Elsevier, vol. 29(7-8), pages 819-831, August.
    42. Clements, Matthew T., 2004. "Direct and indirect network effects: are they equivalent?," International Journal of Industrial Organization, Elsevier, vol. 22(5), pages 633-645, May.
    43. Charles Wessner, 2004. "Entrepreneurship and the Innovation Ecosystem Policy Lessons from the United States," Papers on Entrepreneurship, Growth and Public Policy 2004-46, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    44. Wang, Q. & von Tunzelmann, N., 2000. "Complexity and the functions of the firm: breadth and depth," Research Policy, Elsevier, vol. 29(7-8), pages 805-818, August.
    45. Klaus Eisenack & Susanne C. Moser & Esther Hoffmann & Richard J. T. Klein & Christoph Oberlack & Anna Pechan & Maja Rotter & Catrien J. A. M. Termeer, 2014. "Explaining and overcoming barriers to climate change adaptation," Nature Climate Change, Nature, vol. 4(10), pages 867-872, October.
    46. von Hippel, Eric & Tyre, Marcie J., 1995. "How learning by doing is done: problem identification in novel process equipment," Research Policy, Elsevier, vol. 24(1), pages 1-12, January.
    47. Phillips, Mark A. & Ritala, Paavo, 2019. "A complex adaptive systems agenda for ecosystem research methodology," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    48. Diercks, Gijs & Larsen, Henrik & Steward, Fred, 2019. "Transformative innovation policy: Addressing variety in an emerging policy paradigm," Research Policy, Elsevier, vol. 48(4), pages 880-894.
    49. Campbell-Kelly, Martin & Garcia-Swartz, Daniel & Lam, Richard & Yang, Yilei, 2015. "Economic and business perspectives on smartphones as multi-sided platforms," Telecommunications Policy, Elsevier, vol. 39(8), pages 717-734.
    50. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    51. Shaw, Duncan R. & Allen, Tim, 2018. "Studying innovation ecosystems using ecology theory," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 88-102.
    52. Frenken, Koen, 2000. "A complexity approach to innovation networks. The case of the aircraft industry (1909-1997)," Research Policy, Elsevier, vol. 29(2), pages 257-272, February.
    53. Carlsson, Bo & Jacobsson, Staffan, 1994. "Technological systems and economic policy: the diffusion of factory automation in Sweden," Research Policy, Elsevier, vol. 23(3), pages 235-248, May.
    54. Cristina Ponsiglione & Ivana Quinto & Giuseppe Zollo, 2018. "Regional Innovation Systems as Complex Adaptive Systems: The Case of Lagging European Regions," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    55. Leceta, Jos� Manuel & Renda, Andrea & K�nn�l�, Totti & Simonelli, Felice, 2017. "Unleashing Innovation and Entrepreneurship in Europe: People, Places and Policies," CEPS Papers 12268, Centre for European Policy Studies.
    56. Laurent Scaringella & Agnieszka Radziwon, 2018. "Innovative Entrepreneurial Knowledge-based Business Ecosystems: Old Wine in New Bottles?," Post-Print hal-01953922, HAL.
    57. Russell, Martha G. & Smorodinskaya, Nataliya V., 2018. "Leveraging complexity for ecosystemic innovation," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 114-131.
    58. Walrave, Bob & Raven, Rob, 2016. "Modelling the dynamics of technological innovation systems," Research Policy, Elsevier, vol. 45(9), pages 1833-1844.
    59. Walrave, Bob & Talmar, Madis & Podoynitsyna, Ksenia S. & Romme, A. Georges L. & Verbong, Geert P.J., 2018. "A multi-level perspective on innovation ecosystems for path-breaking innovation," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 103-113.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maria Tomai & Shyama V. Ramani & George Papachristos, 2024. "How Can We Design Policy Better? Frameworks and Approaches for Sustainability Transitions," Sustainability, MDPI, vol. 16(2), pages 1-22, January.
    2. Xiaoran Zheng & Yuzhuo Cai, 2022. "Transforming Innovation Systems into Innovation Ecosystems: The Role of Public Policy," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    3. Hao, Xinyu & Liu, Guangfu & Zhang, Xiaoling & Dong, Liang, 2022. "The coevolution mechanism of stakeholder strategies in the recycled resources industry innovation ecosystem: the view of evolutionary game theory," Technological Forecasting and Social Change, Elsevier, vol. 179(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gomes, Leonardo Augusto de Vasconcelos & Flechas, Ximena Alejandra & Facin, Ana Lucia Figueiredo & Borini, Felipe Mendes, 2021. "Ecosystem management: Past achievements and future promises," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    2. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    3. Markard, Jochen & Raven, Rob & Truffer, Bernhard, 2012. "Sustainability transitions: An emerging field of research and its prospects," Research Policy, Elsevier, vol. 41(6), pages 955-967.
    4. Patrycja Klimas & Wojciech Czakon, 2022. "Species in the wild: a typology of innovation ecosystems," Review of Managerial Science, Springer, vol. 16(1), pages 249-282, January.
    5. Dierk Bauknecht & Allan Dahl Andersen & Karoline Dunne, 2020. "Challenges for electricity network governance in Energy transitions: Insights from Norway," Working Papers on Innovation Studies 20200115, Centre for Technology, Innovation and Culture, University of Oslo.
    6. Bajmócy, Zoltán & Vas, Zsófia, 2012. "Az innovációs rendszerek 25 éve. Szakirodalmi áttekintés evolúciós közgazdaságtani megközelítésben [25 years of innovation systems. A literature review from the angle of evolutionary economics]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1233-1256.
    7. Yanzhang Gu & Longying Hu & Hongjin Zhang & Chenxuan Hou, 2021. "Innovation Ecosystem Research: Emerging Trends and Future Research," Sustainability, MDPI, vol. 13(20), pages 1-21, October.
    8. Rakas, Marija & Hain, Daniel S., 2019. "The state of innovation system research: What happens beneath the surface?," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    9. Steffen S. Bettin, 2020. "Electricity infrastructure and innovation in the next phase of energy transition—amendments to the technology innovation system framework," Review of Evolutionary Political Economy, Springer, vol. 1(3), pages 371-395, November.
    10. Cobben, Dieudonnee & Ooms, Ward & Roijakkers, Nadine & Radziwon, Agnieszka, 2022. "Ecosystem types: A systematic review on boundaries and goals," Journal of Business Research, Elsevier, vol. 142(C), pages 138-164.
    11. Granstrand, Ove & Holgersson, Marcus, 2020. "Innovation ecosystems: A conceptual review and a new definition," Technovation, Elsevier, vol. 90.
    12. Safarzyńska, Karolina & Frenken, Koen & van den Bergh, Jeroen C.J.M., 2012. "Evolutionary theorizing and modeling of sustainability transitions," Research Policy, Elsevier, vol. 41(6), pages 1011-1024.
    13. Souzanchi Kashani, Ebrahim & Roshani, Saeed, 2019. "Evolution of innovation system literature: Intellectual bases and emerging trends," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 68-80.
    14. Jiang, Syuan-Yi, 2022. "Transition and innovation ecosystem – investigating technologies, focal actors, and institution in eHealth innovations," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    15. Fagerberg, Jan, 2018. "Mobilizing innovation for sustainability transitions: A comment on transformative innovation policy," Research Policy, Elsevier, vol. 47(9), pages 1568-1576.
    16. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    17. Joanna Stryjek, 2021. "Counteracting the COVID-19 Crisis with Innovation Policy Tools: A Case Study of the EU’s Supranational Innovation Policy," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 450-468.
    18. Kerstin Hötte, 2021. "Skill transferability and the stability of transition pathways- A learning-based explanation for patterns of diffusion," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 959-993, July.
    19. Pushpananthan, Gouthanan & Elmquist, Maria, 2022. "Joining forces to create value: The emergence of an innovation ecosystem," Technovation, Elsevier, vol. 115(C).
    20. Bleda, Mercedes & del Río, Pablo, 2013. "The market failure and the systemic failure rationales in technological innovation systems," Research Policy, Elsevier, vol. 42(5), pages 1039-1052.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:173:y:2021:i:c:s0040162521005394. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.