In the intricate chessboard of modern business, every company is a player within a dynamic “innovation ecosystem.” We do not operate in a vacuum. We are surrounded by competitors, allies, regulations, and shifting technologies that define the rules of success. The question that haunts every leader is: how do we navigate this complexity not just to survive, but to thrive?
A recent and exhaustive doctoral research from the University of Gothenburg, developed by Hani Elzoumor and titled Navigating Innovation Ecosystems, delves into this question. Analyzing thousands of innovative companies across Europe, the study decodes the relationship between openness to innovation, the development of environmental innovations, and economic performance.
“These three factors are closely linked and mutually influential. Companies that collaborate and exchange knowledge more openly tend to innovate more sustainably, and these innovations, in turn, positively impact both productivity and profitability,” stated Elzoumor.
This article translates his key findings into a practical guide for professionals and entrepreneurs. We will discover how external pressures can be catalysts, how protecting your ideas can make you more collaborative, and why sustainability is, ultimately, a profitable business strategy.
Key takeaways
- External pressures, such as competition and rapid technological changes, are not adversaries; in fact, they drive companies to adopt more open innovation strategies.
- A robust intellectual property strategy (e.g., patents, trade secrets) does not hinder collaboration but rather encourages it, giving companies the confidence to share knowledge.
- Environmental innovation is not just a responsibility; it is a competitive strategy driven by openness, climate pressures, and the need to compete.
- Being “green” is profitable. Companies that introduce environmental innovations, especially clean technologies integrated into their processes, demonstrate better economic performance.
What Is an Innovation Ecosystem and Why Does It Define You?
Imagine a natural ecosystem: a community of organisms interacting with each other and their environment to survive. An innovation ecosystem is similar. According to the framework adopted by the study, an “Innovation Ecosystem” consists of three core elements:
- Actors: Companies, customers, suppliers, universities, governments.
- Activities: R&D, marketing, collaboration, competition.
- Artifacts: The products, services, resources (knowledge, capital), and the innovations themselves that emerge from these interactions.
Your company is the main actor on this stage. Your ability to “navigate”—that is, to strategically manage your relationships with the other elements—determines your success.
Openness as a Driver: How External Pressures Make You Stronger
Open innovation, which involves using external ideas and resources to accelerate internal innovation, is more than a trend; it’s a necessity. The study reveals something fascinating: the forces we often perceive as threats are, in fact, the greatest drivers of openness.
The analysis of 3,476 young, innovative companies in Europe showed that technological and competitive pressures have a significant positive influence on the adoption of open innovation practices. In other words, when the market is more competitive and technology advances faster, companies more actively seek external collaboration and diverse knowledge sources.
Surprisingly, even institutional barriers, such as complex government regulations, showed a positive association with openness. Instead of closing themselves off, companies respond to regulatory uncertainty by expanding their networks, seeking to mitigate risks and find collective solutions.
The Openness Dilemma: Collaborate or Protect?
Herein lies one of the great paradoxes of innovation: to collaborate, we need to feel secure. How can we open our doors to partners without risking our best ideas being imitated?
The research addresses this through the concept of an appropriability strategy, which is a firm’s ability to secure economic returns from its innovations using mechanisms like patents, trade secrets, or copyrights.
Contrary to the popular belief that protection stifles collaboration, the study found that a robust appropriability strategy strengthens a company’s openness. By having clear mechanisms to protect their intellectual property, companies feel more secure to engage in formal collaborations and seek external knowledge, knowing their key assets are safeguarded. Protection is not a wall, but a locked door that you decide when to open.
“By building collaborations based on trust, companies can develop environmental innovations without relying excessively on costly protection strategies, a practice particularly valuable for SMEs and micro-enterprises with limited resources,” highlights the study’s author.
Environmental Innovation: Sustainability as a Competitive Strategy
The focus then shifts to 8,211 companies in Sweden to analyze a specific type of innovation: environmental. Is it just a matter of social responsibility, or is it a smart strategic move? The findings suggest the latter.
The introduction of environmental innovations is primarily driven by three factors:
- The company’s openness strategy provides access to the necessary knowledge.
- Climate-related pressures, such as customer demand for sustainable products and regulations.
- The need to maintain competitiveness.
This demonstrates that sustainability has evolved from a niche concern into a cornerstone of modern business strategy.
Is Being Green Profitable? The Link Between Sustainability and Economic Performance
The million-dollar question for many executives is whether investments in sustainability translate into better economic results. The study’s answer is a resounding yes.
Companies that introduce environmental innovations show superior economic performance. However, not all “green” innovations are created equal. The research distinguishes between:
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- Integrated clean technologies: those that modify production processes to reduce resource consumption at the source.
- “End-of-pipe” technologies: those that treat pollution after it has been generated.
Although both have a positive effect, integrated clean technologies show a much stronger association with high performance, both in technical efficiency (total factor productivity) and financial indicators (net sales).
In this context, public funding for innovation acts as a crucial support structure, helping companies offset initial costs and strengthening the positive relationship between environmental innovation and economic success.
The fundamental lesson from this research is that success in modern innovation ecosystems is not an accident but the result of conscious strategic navigation. It is not about reacting to pressures but about using them as catalysts for openness. It is not about choosing between protecting or collaborating, but about understanding how protection enables more fruitful collaboration. And above all, it is not about viewing sustainability as a cost, but as one of the most powerful levers of innovation and competitive advantage of our time.
“The research contributes to the academic and policy debate on the transition to a more sustainable society. By analyzing data from a wide range of companies, it provides broad and reliable insights into how to accelerate climate-oriented innovation while maintaining economic stability and competitiveness,” Elzoumor concluded.
For the innovator, the entrepreneur, or the strategist, the message is clear: map your ecosystem, understand its forces, strengthen your internal capabilities, and do not be afraid to open your doors. The path to profitability and relevance is, increasingly, a green and collaborative one.
Hani Elzoumor defended his doctoral thesis in a public defense on September 5, 2025, at the School of Business, Economics and Law at the University of Gothenburg.
Reference (open access)
Elzoumor, H. (2025). Navigating Innovation Ecosystems: A Quantitative Inquiry into Openness, Environmental Innovations, and Economic Performance of Innovative Firms [Tesis doctoral, Universidad de Gotemburgo].
Editor and founder of “Innovar o Morir” (‘Innovate or Die’). Milthon holds a Master’s degree in Science and Innovation Management from the Polytechnic University of Valencia, with postgraduate diplomas in Business Innovation (UPV) and Market-Oriented Innovation Management (UPCH-Universitat Leipzig). He has practical experience in innovation management, having led the Fisheries Innovation Unit of the National Program for Innovation in Fisheries and Aquaculture (PNIPA) and worked as a consultant on open innovation diagnostics and technology watch. He firmly believes in the power of innovation and creativity as drivers of change and development.
