How Should Corporates Explore Entrepreneurial Ecosystems?

What is an entrepreneurial ecosystem and why does it matter for corporates?

An entrepreneurial ecosystem can be defined as the set of market dynamics, policies, support mechanisms, financial resources, culture, technological know-how, and human capital that surround entrepreneurs in a given country or region. These elements jointly shape both the decision to become an entrepreneur and the likelihood that a startup will succeed. In a strong ecosystem, bureaucratic barriers are minimised, capital is mobilised towards experimentation, success is rewarded, and failure is tolerated as a source of learning. Dialogue between stakeholders—startups, investors, corporates, universities, and public agencies—is active and continuous.

For companies running open innovation programmes, this context determines the quality and quantity of potential partners. Once a firm reaches a certain level of maturity in its home market, it inevitably feels the need to explore entrepreneurial ecosystems beyond its own borders. Without a structured understanding of these environments, international open innovation efforts risk remaining opportunistic and fragmented. Analysing ecosystems becomes a strategic task: it tells the company where to scout, with whom to collaborate, and how to adapt its value proposition to local realities.

How can corporates start exploring an entrepreneurial ecosystem?

Exploration begins with understanding the local entrepreneurial culture and innovation climate. Culture influences how founders perceive risk, opportunity, and failure: in some regions, entrepreneurial attempts are socially rewarded even when they do not succeed; in others, a failed venture can carry a long-lasting stigma. The innovation climate reflects how strongly public authorities and private actors support experimentation, R&D, and new business creation through grants, tax incentives, or dedicated programmes. Together, these dimensions provide early signals about the ecosystem’s ability to generate resilient startups with global ambitions.

Beyond culture, regulation and legal frameworks directly shape entrepreneurial activity. Investor-friendly rules, tax advantages, ease of business formation, and clear IP protection make an ecosystem attractive, while complex, opaque regulations discourage both founders and investors. Corporates planning to collaborate with or invest in startups need to understand whether local rules allow fast company creation, flexible capital structures, and cross-border operations. A favourable legal environment not only facilitates individual projects; it sustains the long-term vitality and scalability of the ecosystem itself.

Which structural factors should be analysed when comparing ecosystems?

Access to finance is a critical differentiator between ecosystems. The presence and density of angel investors, venture capital funds, public co-investment programmes, and specialised credit instruments determine how quickly startups can move from idea to scale. Corporates interested in strategic partnerships or corporate venture capital should map who finances what, at which stages, and in which sectors. An ecosystem with multiple funding sources tends to produce more robust, better-governed startups, making collaboration smoother and less fragile.

Equally important are education and talent pools. Technical universities, research centres, and innovation-focused training programmes feed the ecosystem with skilled engineers, scientists, and business builders. The quality and availability of this talent influence both the sophistication of local startups and their capacity to address deep-technology challenges. Corporates should evaluate whether the ecosystem produces enough specialised profiles in fields relevant to their strategy—such as AI, green technologies, advanced materials, or fintech. Finally, support structures—accelerators, incubators, mentor networks, and entrepreneurship associations—play a stabilising role: they improve survival rates, provide startups with advice and networks, and offer corporates structured entry points into the community.

How should companies conduct a structured ecosystem analysis?

A serious ecosystem analysis starts with systematic desk research. Corporates gather data from public sources, specialised reports, startup databases, sector studies, and academic work. This includes indicators on sector growth, competitiveness, consumer behaviours, and technology adoption. At this stage, the aim is to build a fact-based view of how dynamic the ecosystem is, where its strengths and weaknesses lie, and how it aligns with the company’s strategic sectors.

Based on this information, corporates should run comparative analysesof several ecosystems rather than treating countries as monolithic units. In practice, meaningful differences often exist between cities within the same country: one may host top technical universities and deep-tech labs, another may concentrate venture capital, and a third may specialise in creative industries. Comparing cities along dimensions such as funding, talent, regulation, and sector focus helps identify where to invest scouting time and corporate resources. Importantly, this comparison should also consider how well each ecosystem is aligned with global technology and market trends, not just local conditions.

Why are field visits and local partnerships indispensable?

Desk research alone cannot capture the subtleties of a startup ecosystem. To move beyond abstract indicators, corporate teams must visit ecosystems on the ground. Field missions allow them to attend startup events, pitch days, and meetups; to visit accelerators and co-working spaces; and to have direct conversations with founders, investors, and local support organisations. These interactions reveal cultural nuances, informal rules, and emerging trends that rarely appear in reports. They also expose gaps between official narratives and everyday realities.

Local partnerships amplify this learning. Collaborating with regional angel networks, accelerators, technology parks, and universities gives corporates access to early-stage deal flow and insider knowledge. In some cases, companies sign “first call” agreements with acceleration centres: in exchange for an annual fee, the centre shares information about startups working on technologies of interest and facilitates direct introductions. Such relationships make it easier to identify promising ventures before they become widely visible and to co-design programmes adapted to the corporate’s strategic domains. Over time, local partners become trusted guides who help navigate regulatory changes, cultural expectations, and shifts in ecosystem dynamics.

How can corporates turn ecosystem insights into concrete opportunities?

Understanding an ecosystem is only valuable if it leads to actionable opportunities. Corporates should first identify which sectors and niches are most relevant to their strategy within each ecosystem. In many regions, specific verticals—such as mobility, health, climate tech, or fintech—emerge naturally from the local economic structure, cultural preferences, and technological base. Early-stage investments in these areas can offer high return potential, but also higher risk. A focused analysis of sector-level competitive advantage and global growth prospects helps concentrate resources where the upside justifies the uncertainty.

Once priorities are defined, corporates can deploy multiple instruments: early investments, PoCs, joint development projects, and long-term partnerships. Crucially, they should aim to add value beyond capital. Mentoring, business development support, access to international customers, and strategic guidance are often as important for founders as funding. Post-investment, regular monitoring and dialogue ensure that both parties can adjust to market changes and maintain alignment. For the corporate, this continuous engagement transforms isolated deals into a coherent portfolio that reflects both local ecosystem strengths and global strategic goals.

What capabilities should a discovery team have to explore ecosystems?

Systematic exploration of entrepreneurial ecosystems requires a multidisciplinary discovery team. Technology and innovation experts assess the technical robustness and novelty of startup solutions, evaluate product development roadmaps, and benchmark R&D capabilities against global standards. They keep track of international technology trends and identify where local strengths intersect with corporate priorities.

Market research specialists analyse the economic, cultural, and social dynamics of target ecosystems. They identify high-potential sectors and niche markets, interpret consumer behaviour, and map competitive landscapes. Financial analysts evaluate startups’ business models, unit economics, and funding needs; they estimate risk–return profiles and help design investment structures. Investment professionals and portfolio managers oversee deal selection, negotiation, and exit strategies, ensuring that individual bets add up to a balanced portfolio. Legal advisers navigate local regulations, draft contracts, and manage compliance and investor protections. Finally, local consultants bring essential cultural and contextual knowledge, helping the team understand informal norms, negotiation styles, and relationship-building practices. Together, this multidisciplinary team can capture both local subtleties and global strategic implications.

How can multinationals leverage their international footprint in ecosystem work?

Companies that already operate offices or production facilities abroad possess a powerful, often underused asset for open innovation. Local employees in those regions are uniquely positioned to observe emerging startups, attend ecosystem events, and provide early market intelligence. When they are trained in open innovation and connected to a central startup database, they become an extended discovery network across countries. Information about startups they meet can be systematically captured and shared with the corporate innovation team at headquarters.

Regular coordination between central and local teams—through structured virtual meetings, shared tools, and clear reporting formats—allows the company to scale its ecosystem strategy rapidly across geographies. Headquarters can then prioritise which opportunities to advance into PoCs or investments, while local teams support execution on the ground. Over time, this model turns an international footprint into a distributed sensor network, continuously scanning multiple ecosystems for relevant technologies, business models, and talent. The result is a more resilient, globally informed open innovation strategy that does not rely solely on the perspective of the home market.

Key Takeaways

• Entrepreneurial ecosystems are complex systems of culture, regulation, finance, talent, and support structures that determine startup quality and growth.

• Corporates should analyse ecosystems city by city, not only country by country, to capture meaningful differences in sector focus, funding, and talent.

• Desk research must be complemented by field visits and local partnerships to reveal informal rules, emerging trends, and realistic collaboration options.

• Turning insights into value requires clear sector and niche priorities, early-stage investments, and value-added support beyond capital.

• A multidisciplinary discovery team—combining technology, market, financial, legal, and local expertise—is essential for robust ecosystem exploration.

• Multinationals can use their international offices as extended sensors, integrating local observations into a central startup database and coordinated open innovation strategy.

FAQ

Do we need a different strategy for every ecosystem?
You need a consistent global framework, but tactics should adapt to each ecosystem’s culture, regulation, sector focus, and maturity. Copy–paste strategies rarely work across cities.

Is it always better to invest rather than just collaborate?
Not necessarily. In many cases, PoCs and commercial partnerships create more immediate value than equity. Investment makes sense when strategic alignment and long-term potential are clear.

How large should a discovery team be to start ecosystem exploration?
Even a small, focused team can be effective if roles are clear and local partners are leveraged. What matters most is multidisciplinary skills and a disciplined, repeatable approach.

References

• OECD, reports on entrepreneurship, regional innovation, and startup ecosystems.

• European Commission, studies on innovation ecosystems and corporate–startup collaboration.

• Global Entrepreneurship Monitor (GEM), annual reports on entrepreneurial activity and ecosystem conditions.

• Harvard Business School case studies on multinational open innovation and ecosystem strategies.