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Building Competitive Ecosystems with Smart IP Governance and Design

This summary of the PhD thesis by Pavel Laczko: “Designing and orchestrating ecosystem-based business models” explores how ecosystem business models reshape value creation through collaborative networks of diverse actors. It outlines core design principles such as modularity, shared governance, and interoperability, emphasizing that success depends on orchestrating roles like contributors, integrators, and enablers. A central focus is the strategic integration of intellectual property (IP) into ecosystem design. IP is shown to help define ecosystem boundaries, protect core assets, attract partners through licensing, and enable safe co-innovation. Business model innovations—like network-based value propositions, dynamic revenue models, and multi-actor R&D—highlight how ecosystems thrive on flexibility and inclusivity. Challenges such as trust, data sharing, and scalability are addressed alongside policy support and measurement strategies. This summary additionally positions IP not just as a legal tool, but as a foundational asset in enabling ecosystem growth, innovation, and resilience.

Laczko, Pavel: Designing and orchestrating ecosystem-based business models: Processual study of value maximization in the sharing economiy, PhD thesis, Faculty of Business and Law, University of Portsmouth, UK: 2019

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Understanding the Ecosystem Business Model Framework

The concept of ecosystem business models is increasingly central to how value is created, captured, and distributed in modern economies. Rather than operating in isolation, businesses now participate in complex networks of interdependent actors—including firms, customers, regulators, and technologies—that co-evolve over time. This document outlines the principles, design strategies, and structural choices that support successful ecosystem business models.

The core idea is that businesses no longer compete solely as individual entities but as part of collaborative ecosystems. These ecosystems deliver integrated solutions rather than standalone products or services. As such, success depends on the ability to coordinate and align various stakeholders around shared goals, governance frameworks, and value propositions.

Key Design Principles for Ecosystem Business Models

Designing a functional ecosystem business model requires more than assembling partners or integrating technologies. It requires a deliberate approach to structuring value creation, delivery, and capture across multiple actors. This section outlines foundational principles that guide successful ecosystem architecture.

  • Shared value orientation: Ecosystem models must prioritize collective benefit. When all participants gain from cooperation, incentives align, and the ecosystem becomes self-reinforcing. Misaligned incentives, on the other hand, often lead to fragmentation or collapse.
  • Modular design and interoperability: Modular structures allow participants to plug in or out without disrupting the whole system. Interoperability—across technical, operational, and strategic layers—is essential for scalability and resilience.
  • Distributed governance: Centralized control often fails in ecosystems. Shared decision-making, participatory rule-setting, and transparent dispute resolution mechanisms promote trust and long-term viability.
  • Open innovation and adaptive learning: Ecosystems thrive on external ideas, feedback, and experimentation. This openness enables faster innovation cycles and greater responsiveness to change.

Strategic Roles Within Ecosystem Structures

Participants in an ecosystem occupy varied strategic positions. Understanding these roles is key to shaping governance, collaboration, and competitive dynamics. The roles include orchestrators, contributors, integrators, and enablers, each of which adds specific value.

  • Orchestrators: These actors set the direction, rules, and architecture of the ecosystem. They often invest in core platforms, standards, and branding. Successful orchestrators maintain a balance between control and openness to encourage participation.
  • Contributors: Contributors bring critical resources, knowledge, or capabilities. They may provide data, content, algorithms, or services. Their ongoing engagement is crucial for maintaining the ecosystem’s relevance.
  • Integrators: Integrators link various ecosystem components to deliver a unified customer experience. They specialize in coordination and service bundling. Integration enhances usability and customer satisfaction.
  • Enablers: These actors provide the tools, technologies, or infrastructure that support other participants. They often remain behind the scenes but are indispensable for system functionality.

Business Model Innovation in Ecosystem Contexts

Traditional business models focus on value creation within firm boundaries. Ecosystem business models expand this logic to include value co-creation across multiple entities. This shift demands new thinking around monetization, customer interaction, and innovation strategy. Three important themes define innovation in ecosystem models:

  • Network-based value propositions:
    Modern business ecosystems shift the focus from standalone offerings to integrated, networked solutions that span multiple products and services. The real value emerges through how components interact and create seamless experiences for users. This systemic approach enhances customer loyalty and allows for differentiated offerings that are hard to replicate.
  • Dynamic revenue models:
    Ecosystem-based business models demand flexible monetization strategies that adapt to diverse actors and usage patterns. Subscription models, usage-based pricing, licensing, and revenue sharing allow participants to earn value proportionally. These models also support scalability and innovation, particularly in digital and platform-driven environments.
  • Multi-actor co-innovation:
    Innovation in ecosystems is no longer the exclusive domain of a single company; instead, it thrives through collaboration across organizational and sectoral boundaries. Startups, research institutions, customers, and corporations contribute different capabilities, fostering creativity and experimentation. This distributed innovation model leads to faster development cycles and broader societal impact.
  • Shared infrastructure and standards:
    Successful ecosystems often depend on common platforms, technical protocols, and data formats that ensure interoperability. Shared infrastructure reduces duplication, speeds up integration, and creates a level playing field for new entrants. These standards also make the ecosystem more resilient and adaptive by enabling smoother partner onboarding and system-wide upgrades.

Challenges in Ecosystem Design and Execution

Despite their potential, ecosystem business models face several critical challenges. These stem from the inherent complexity of coordinating multiple actors, ensuring fair value distribution, and sustaining trust across the network.

  • Coordination complexity: Aligning timelines, standards, and incentives across diverse entities is difficult. Misalignment can stall innovation and increase friction.
  • Data sharing and ownership: Data is a key resource in ecosystems, but legal and strategic concerns often limit its exchange. Clear frameworks for data access, privacy, and usage are needed.
  • Trust and conflict resolution: Ecosystems rely on cooperation, but disputes are inevitable. Mechanisms for building trust and resolving conflict are essential for longevity.
  • Scalability constraints: Growing an ecosystem without losing coherence or quality is a challenge. As participation increases, maintaining performance and governance becomes more complex.

Examples and Archetypes of Ecosystem Business Models

Ecosystem business models are diverse and manifest differently across sectors. The document categorizes them into archetypes based on the core logic of value creation, participant interaction, and governance structure.

  • Platform-based ecosystems:
    Digital platforms such as app stores, e-commerce marketplaces, and API hubs serve as foundational infrastructure for these ecosystems. They facilitate interactions between multiple participant groups—like developers and users, buyers and sellers—enabling value exchange across two-sided or multi-sided markets. The success of such ecosystems depends heavily on network effects, interoperability, and transparent governance mechanisms.
  • Knowledge and innovation ecosystems:
    These ecosystems bring together academic institutions, research labs, startups, and established firms to co-develop new technologies, methodologies, and knowledge assets. Collaboration across institutional boundaries fosters rapid experimentation and access to diverse capabilities. Managing intellectual property rights, licensing frameworks, and knowledge sharing practices is critical to ensuring equitable value distribution and sustained innovation.
  • Service integration ecosystems:
    In service integration ecosystems, different providers come together to offer seamless, end-to-end experiences across traditionally siloed domains. Sectors like healthcare, mobility, and smart cities benefit from this approach by improving accessibility, personalization, and operational efficiency. A key challenge is aligning different systems, data standards, and organizational cultures to ensure a cohesive and user-friendly service experience.
  • Product-centric ecosystems:
    These ecosystems are organized around a flagship product that acts as the central platform for related offerings. Accessories, digital extensions, and complementary services are developed by third parties to enhance the value of the core product. Prominent examples include smartphones, where apps, cases, and cloud services form an integrated experience, or gaming consoles that support games, subscriptions, and peripherals.

Ecosystem Metrics and Performance Indicators

Measuring the performance of ecosystem business models requires metrics that go beyond traditional KPIs. These indicators must reflect the multi-actor, adaptive nature of ecosystems and assess both individual and collective outcomes.

  • Participation rate and diversity: The number and type of active participants signal vibrancy and inclusivity. Diverse ecosystems are often more innovative and resilient.
  • Interoperability and integration quality: Technical compatibility, process alignment, and seamless user experiences are vital for functional ecosystems. Friction can reduce adoption and loyalty.
  • Co-innovation output: The number of joint projects, patents, or new offerings indicates collaborative effectiveness. Measuring innovation velocity is equally important.
  • Value distribution fairness: Transparent models for revenue sharing and value allocation build trust and sustainability. Perceived fairness impacts willingness to contribute.

Policy and Institutional Considerations

Policy frameworks must evolve to support the growth and governance of ecosystem business models. Governments and institutions play a crucial role in enabling innovation, protecting participants, and fostering systemic health.

This requires:

  • Adaptive regulatory frameworks: Regulation must accommodate fluid partnerships, data flows, and cross-sector interactions. Static policies can stifle innovation.
  • Public-private partnerships: Collaboration between governments, academia, and businesses supports infrastructure development and capability building.
  • Incentives for ecosystem participation: Grants, tax breaks, and procurement policies can encourage firms—especially SMEs—to join ecosystems and co-innovate.
  • Support for standards and interoperability: Governments can help establish shared protocols, platforms, and best practices to reduce fragmentation.

Integrating Intellectual Property Strategy in Ecosystem Orchestration

Intellectual property (IP) is a powerful enabler for ecosystem orchestration, particularly in innovation-driven or technology-intensive sectors. Orchestrators—the actors who guide the direction and structure of the ecosystem—use IP to define roles, protect core assets, and incentivize partner engagement. A robust IP strategy ensures that value created collaboratively is also protected and fairly distributed. IP contributes to effective orchestration in several key ways:

  • Establishing ecosystem boundaries:
    Patents, trademarks, and proprietary platforms enable orchestrators to clearly delineate which parts of the ecosystem are open for collaboration and which are protected. This clarity helps all participants understand the rules of engagement and what can or cannot be reused or modified. As a result, expectations are better managed, and potential legal or operational conflicts are minimized.
  • Protecting core value drivers:
    Securing exclusive rights to essential technologies, processes, or brand elements allows orchestrators to anchor their leadership within the ecosystem. These protected assets form the basis of the orchestrator’s long-term strategic advantage. At the same time, controlled access to these core assets empowers other participants to innovate without diluting the ecosystem’s integrity.
  • Attracting partners through licensing models:
    Flexible intellectual property licensing strategies help orchestrators balance control with openness. Models such as revenue-sharing agreements, open innovation clauses, or preferential access for certain partners can appeal to a wide range of contributors. These licensing arrangements not only foster collaboration but also align incentives around mutual value creation.
  • Encouraging co-innovation while managing risk:
    Joint development agreements and co-owned IP structures provide a legal foundation for multi-party innovation. They allow different stakeholders—such as startups, universities, or corporate labs—to contribute without fearing misappropriation or loss of ownership. Clear definitions of rights, usage terms, and revenue allocation help reduce uncertainty and ensure innovation benefits are equitably distributed.

When IP is used strategically, it becomes more than a legal shield—it functions as a tool for shaping ecosystem architecture, driving collaboration, and reinforcing trust. Orchestrators who integrate IP into governance and incentive structures build more sustainable, innovation-friendly ecosystems. In this context, IP transforms from a protective asset into a collaborative catalyst.

Conclusion: Strategic Relevance of Ecosystem Thinking

The document concludes by affirming that ecosystem business models represent a transformative shift in how economic value is generated. They offer opportunities for innovation, growth, and resilience that traditional models struggle to match. However, realizing this potential requires new strategic mindsets, governance models, and performance metrics.

Success in ecosystem design and management depends on the ability to build trust, align incentives, and adapt continuously. Organizations must invest not just in technology, but also in relationships, governance, and shared infrastructure. Ecosystem thinking, when applied thoughtfully, can redefine competitiveness in the 21st-century economy.

Expert

Editorial Staff