Emergence of an Industrial Innovation Ecosystem: Renewable Energy in India

Theories and studies of ecosystem emergence focus on macro level explanations such as government investments in research and development or those at the organizational level such as displacement of an older technological system by a new one through competition between technologies. However, mechanisms by which such shifts occur are underemphasized. This article draws on complexity theory to develop a theoretical framework to describe how emergence is generated through top down 'rules' that constrain the behavior of the system, directing it towards a desired outcome. Emergence dynamics include rules to encourage participants (including entrepreneurs and established organizations) to exploit opportunities arising from disequilibrium conditions. Amplifying actions arise from support for the emerging ecosystem, followed by recombination of the elements of the system to enable integration. The system stabilizes when it achieves a level of performance and legitimacy. Findings from a case study on the emergence of the Indian renewable energy ecosystem support the framework and provide policy implications for designing ecosystems.