Beyond Buzzwords: An Integrated Framework for Understanding Place-Based Innovation Ecosystems

John H Howard, 30 October 2025

The term “innovation ecosystem” has become a cornerstone of modern economic and urban policy. It is invoked by governments, universities, and industry leaders to justify everything from new infrastructure projects to research funding. Despite this ubiquity, the concept often remains frustratingly vague. Its meaning tends to shift depending on who is speaking.

The recently published Handbook of Innovation Ecosystems offers a necessary and timely antidote to this conceptual confusion. Drawing on decades of cross-sectoral experience and an evidence base of over ninety case examples, it provides what is arguably the first truly integrated framework for understanding how successful innovation ecosystems work.

This is not another celebration of start-up culture or a simple precinct planning guide: it is a foundational text for anyone in public governance serious about turning the rhetoric of innovation into a durable reality.

The Handbook reflects a reality that the innovation ecosystems concept is not “owned” by any one particular discipline.  It is truly transdisciplinary in that it reflects multiple scholarly and professional perspectives.

These perspectives include but are by no means limited to public administration and policy, institutional and development economics, urban and regional development, innovation studies and policy, management practice and organisation theory, arts and creative practice, and of course the theory of knowledge itself. This invites readers to see the Handbook through their own particular lenses. It brings breadth, although some may be wanting more depth in their own specialised fields. This can nonetheless stimulate further inquiry.

That said, the Handbook’s most significant contribution is in its central argument: successful ecosystems do not emerge by chance, nor can they be brought about by funding alone. They are the product of deliberate, long-term integration across four core but often siloed domains: Placemaking, Economics, Business, and Governance. This “four-domain convergence framework” forms the intellectual backbone of the Handbook. Its aim is to provide a unified field theory for a subject that has long been fragmented.

The Handbook demonstrates that each domain originates from a different intellectual tradition.

The Placemaking domain draws from urban studies and writers concerned with the quality of the built environment. It explores how urban design, public spaces, and cultural amenities create the physical and social conditions for the serendipitous encounters and knowledge exchange that are vital for innovation. It treats placemaking as essential socio-cultural and economic infrastructure, not just as an aesthetic add-on.

The Economics domain is grounded in innovation studies and the work of figures such as Joseph Schumpeter, Michael Porter, Christopher Freeman, and Paul Romer on concepts that include creative destruction, innovation systems, and endogenous growth. This perspective examines the logic of industrial clusters, knowledge spillovers, and regional competitive advantage. It provides the analytical tools to understand how ecosystems generate productivity growth, attract investment, and build the specialised capabilities needed to compete globally.

The Business domain stems from management theory and entrepreneurship studies. It focuses on firm capabilities, commercial pathways, business ecosystems, open innovation, entrepreneurial dynamics, and the architecture of investment required to translate ideas into market value. This part of the framework examines how to align private commercial incentives with public policy objectives, ensuring that development is both financially viable and delivers public benefit.

Finally, the Governance domain, of particular interest to this bulletin’s readership, is grounded in political science, public administration, institutional economics and science and technology policy. Here, the book examines the institutional design, coordination mechanisms, and leadership required to orchestrate complex, multi-stakeholder systems. It draws on theories of collective action, Mode 2 Knowledge and Triple Helix concepts. This involves moving beyond traditional command-and-control structures to more adaptive and collaborative models of stewardship.

In isolation, each perspective provides only a partial view. A property-led development without deep economic or governance logic becomes a sterile science park. A research program without commercial pathways or place-based anchors fails to translate. A core insight of the book is that the persistent failure of many innovation policies stems from this very fragmentation. Policymakers and practitioners often talk past one another, each using their own disciplinary language and metrics for success.

The Handbook offers a common vocabulary to bridge these divides. Through detailed analysis and rich case studies, from Boston’s Kendall Square, the MaRs Discovery District, and 22@Barcelona to Sydney’s Tech Central and Adelaide’s Tonsley Innovation District, the book shows how convergence is achieved in practice. We see how strategic spatial planning must align with economic incentives, how commercial viability can be structured to deliver public benefit, and how adaptive governance must hold it all together. The research is built upon this formidable evidence base, which reveals consistent patterns in what works, what does not, and why.

Beyond this central framework, the book dismantles several persistent myths in innovation policy. It challenges the “input fallacy”—the flawed assumption that innovation outcomes can be purchased through funding alone. It argues instead for a focus on building translational infrastructure and, critically, the “absorptive capacity” of firms to recognise, assimilate, and apply new knowledge. This shifts the policy lens from funding research to building the connective tissue that allows knowledge to be used effectively.

A crucial concept developed in the book is that of the “systems integrator.” It uses the metaphor of a jazz combo leader to describe the essential role of individuals and organisations that connect actors across disciplinary and institutional boundaries. For public administrators, this is a powerful idea. It reframes the task of government from one of direct control to one of orchestration, creating the conditions for collaboration, building trust, and maintaining strategic coherence over long time horizons that extend beyond short electoral cycles.

The Handbook is an intensely practical work; it is not a theoretical treatise but a guide for action. It positions innovation ecosystems as civic and cultural projects alongside economic necessities, emphasising the importance of social inclusion, legitimacy, and public value. This perspective is vital for ensuring that the benefits of innovation are broadly shared and that districts do not become exclusive enclaves of privilege, a real risk highlighted in several case studies.

For this interested in public governance the book will resonate strongly. It speaks directly to the challenge of managing complex, multi-stakeholder systems where traditional hierarchical authority is ineffective. It provides a robust argument for why public administration must move beyond siloed program delivery towards a more integrated, adaptive, and place-aware model of stewardship. The chapters on governance, institutional design, and the political economy of stakeholder management are essential reading for any public sector leader.

The Handbook is written with clarity of prose, is engaging, and devoid of jargon, making complex ideas accessible to a broad readership. The book’s structure is logical, moving from conceptual framing and value creation to the practical design logic and detailed case studies. The inclusion of perspectives from other experts in dedicated chapters adds further depth and texture to the analysis.

Policy Recommendations:

• Move beyond the ‘input fallacy’: Shift focus from simply increasing funding for R&D to investing in the connective infrastructure (both physical and institutional) that enables knowledge to be effectively translated and absorbed by industry.

• Invest in systems integrators: Formally recognise and resource the intermediary organisations and leadership roles that orchestrate collaboration across sectors. Effective ecosystems require dedicated, long-term stewardship.

• Adopt integrated policy design: Structure innovation policies around the convergence of placemaking, economics, business, and governance, ensuring that initiatives are mutually reinforcing rather than siloed within separate government portfolios.

• Prioritise institutional craft over short-term projects: Build enduring institutional capabilities and governance models that can sustain strategic direction across political cycles, treating ecosystem development as a long-term stewardship responsibility.

• Embed inclusion as a core objective: Design innovation policies with explicit goals for social and economic inclusion to ensure that benefits are broadly distributed, building the public legitimacy required for long-term success.

Implications for Practitioners:

• Use the four-domain framework as a diagnostic tool: Practitioners can use the framework to assess the strengths and weaknesses of their local innovation ecosystem, identifying gaps in placemaking, economic logic, business integration, or governance.

• Build relational and social capital: Focus on building trust and strong working relationships among people in universities, industry, government, and community stakeholders. These relationships are the true currency of a functioning ecosystem.

• Develop absorptive capacity: For businesses, this means investing in the internal skills and processes needed to adopt external innovation. For universities, it means actively helping partners apply new knowledge.

• Champion a shared narrative: Articulate a clear and compelling vision for the ecosystem that aligns diverse stakeholders around a common purpose and a shared identity.

• Engage with the community to build social licence: Treat the development of innovation districts as a civic project–much more than an economic agenda imperative. Meaningful and ongoing engagement with local residents and communities is essential for long-term sustainability.

The Handbook of Innovation Ecosystems is a significant contribution to a more coherent understanding of a vital subject. By providing a clear, interdisciplinary framework, it moves the conversation beyond the buzzword and offers a tangible path forward. For policymakers, city leaders, and anyone involved in shaping our economic future, it is an indispensable guide to building the resilient and inclusive innovation ecosystems of tomorrow. It provides the intellectual architecture needed to match our economic ambitions.

This Insight was originally published in InnovationAus on 24 October 2025.

Book details:

The paperback edition of the Handbook is available through Amazon Publishing and Gleebooks in Glebe, Sydney. It is also available as an eBook through Kindle.

Publisher: Acton Institute for Policy Research and Innovation | Publication date: 4 October 2025 | Print length: 559 pages | ISBN-13: 978-1764140713.

Dr John H. Howard is a Visiting Professor at the University of Technology Sydney and Executive Director of the Acton Institute for Policy Research and Innovation. He is a highly regarded expert on science, research, and innovation policy, innovation ecosystems, urban and regional development, and metropolitan and local government.  Further information is at www.actoninstitute.au.   

John can be contacted at john@actoninstitute.au