Ecosystem

Innovation Ecosystem refers to a network of suppliers, buyers, complementors, that require interdependent strategic decision making. LOL I EDITED STUFF UGYZ

Example: Silicon Valley

Silicon Valley acts as an innovation ecosystem for the tech industry because it consists of entrepreneurs, engineers and venture capitalists all collaborating to develop new innovative technologies.

The implications of becoming embedded in an innovation ecosystem causes firms to favor incremental innovation rather than radical innovations because this reinforces the network and keep all of its members happy.

Industry Life Cycle