Innovation Ecosystems for Sustainability Transition: From Policy Intervention to Stakeholder Coalition

In this paper I develop and compare two models of innovation. Following literature review a conventional model of technological innovation is constructed which focuses primarily on new product or new process development. In recent years through my research, teaching and editorial experience, I develop an emerging model of innovation ecosystems which offer a broader framework for innovation studies. I use the automotive industry as a case in point and argue that technological innovation to reduce CO
₂
emissions from the transport sector has been primarily driven by policy interventions as exogenous forces. Innovation ecosystems are a more effective approach to helping us embark on the transition to sustainability. Key to innovation ecosystems are stakeholder coalition, a combination of both exogenous and endogenous forces to innovation ecosystems. Considering the relative efficiency of innovation development by product producers vs. product intermediate users I conclude that product intermediate users augmented innovation ecosystem is more effective and efficient than policy-intervention model.