From Early Curiosity to Space Wide Web: Emergence of the Small Satellite Innovation Ecosystem

Abstract

Much of the existing literature on ecosystems has focused on established ecosystems, but we know little about how an ecosystem actually emerges and evolves in the first place. We layout four stages of ecosystem development, integrate two critical ecosystem concepts of multilateral interdependence and non-generic complementarity, and delineate a typical trajectory along which multilateral non-generic complementarity develops across the stages. We develop theoretical insights on how the gradual process of multilateral non-generic complementarity development enables materialization of a coherent, customer-centric, economic value proposition in an innovation ecosystem. To illustrate our theoretical framework, we conduct a longitudinal case study of the modern small satellite innovation ecosystem from its inception to now. Our analysis uncovers the dynamic process of how small satellites evolved from a seed innovation with unclear value proposition to become an innovation ecosystem that delivers strong modern space capabilities. Our paper provides deeper insight on ecosystem emergence and evolution and has important implications for ecosystem strategizing by firms both individually and collectively.