Mastering Innovation Ecosystems: Three Golden Rules Unveiled

I recently stumbled upon an eye-opening article from IBM’s Institute of Business Value. According to their survey of nearly 2,400 global executives, open innovators who actively engage with ecosystems see a staggering 58% revenue growth benefit compared to those who go it alone (2). Simply put, strong ecosystem engagement can enable your Open Innovation returns to skyrocket, unlocking immense value for your company.?

But what does “strong ecosystem engagement” mean and how do you unlock this value?? Before getting to that, as there’s many definitions of an innovation ecosystem, here’s one that really resonates with me:

Budden and Murray (3) define innovation ecosystems as “places that involve five types of stakeholders (research institutions, entrepreneurs, corporations, investors, and governments) linked by a strong social fabric of mutual interest, needs, and complementary resources and trust.”? I believe an innovation ecosystem doesn’t need to be all in one physical space, it can and should be broader than that.

In the food sector, I’ve come across and worked directly and indirectly within some of these ecosystems.? ?Examples include:? EIT Food, Swiss Food and Nutrition Valley, Food Valley Netherlands, Wageningen Campus, and so on. ?Engaging with a new innovation ecosystem isn’t simple but my experiences have taught me that if you follow these 3 golden rules, you will increase your chances of unlocking a ton of value:

1.????? Find the right one – an ecosystem that meets what you need and can help solve your problems.? Be prepared to contribute and ensure your working methods align with what's required.? Also, remember the ecosystem must want you too. I learnt this the hard way when I joined an ecosystem without understanding the partners first. We weren't welcome or valued, a mistake that could have been avoided by getting to know some of the players beforehand.

2.????? Get known – congratulations you have joined an ecosystem that meets your business objectives and one that you can give to as well as take.? The next step is to make yourself known.? There’s no better way of doing this than to offer to publicly speak to your ecosystem peers, and the sooner you do that the better.? This is way more efficient and impactful than setting up dozens of intro calls. I once gave a talk and during the coffee break that followed, found myself approached by some really interesting people, leading to some wonderful conversations and unexpected business opportunities.? ?

3.????? Actively participate – I've lost count of how many ecosystem events I've attended where company representatives seem more focused on their phones than engaging in the workshops.? It sends out the signal that this ecosystem is not important to our company (nor to me).? It should then come as no surprise when the engagement level from the ecosystem partners is weak.? I’ve had partners come up to me and say they feel the only reason another company is in the ecosystem is to keep an eye on things and not to add value.? Being an active participant, vocal supporter of others, and a meaningful contributor showcases your positive intent. Actions speak louder than words, and people will always take notice of what you do. By doing so, you'll position yourself as a valued partner of choice—right where you want to be.

In summary, engaging with innovation ecosystems can bring a lot of value to your company, and when done purposefully the Return on Investment is well and truly “worth the squeeze”.

Have a wonderful year ahead, Imran.

Agree/Disagree?? Is there another topic you’d like to see covered in a post?? I work in the Open Innovation space, helping corporates to unlock value and startups to accelerate.

1.?????? Image - Hoffecker, Vogel, Adomza. 2021. Facilitating Innovation Ecosystem Strengthening: Lessons from the Next i2i Program. DO - 10.13140/RG.2.2.14638.23360

2.?????? Lipp et al.? Open the door to open innovation:? Realising the value of ecosystem collaboration:? IBM Institute of Business Value.? January 2022.

3.?????? Budden and Murray. Strategically Engaging with Innovation Ecosystems.? MIT Sloan Management Review.? July 2022.