This introductory chapter sets the scene for the book theme and presents the main book contributions and take-aways. It first briefly overviews the entrepreneurial ecosystems and the innovation systems frameworks focusing on their central topics, evolution and practical applications. It proceeds to highlight the ways the two concepts can (and in many cases should) learn from each other. This discussion leads to the policy lessons, which in general suggest that the systemic approaches to local economic development, when properly tailored to the local conditions and needs, can deliver superior results compared to the “traditional” (usually narrow-focused) policy initiatives. Finally, the chapter touches upon several underexplored areas, such as entrepreneurial culture from the anthropological perspective, social entrepreneurship in the so-called latecomer economies and the ability of the entrepreneurial ecosystems to contribute to the reduction of the informal economic sector.

This introductory chapter synthesizes the arguments presented by the book contributors and argues that a broad definition of innovation systems is appropriate in the context of developing and transition countries. By weaving in specific examples from the chapters, the introduction demonstrates the importance of a context-specific approach that takes into account sociocultural context, macroeconomic structures and institutions. Taken as a whole, the book shows how the system level of National Innovation Systems (NIS) influences the way firms and other actors build up competences and learn, while the outcomes of interactions among these actors at the micro level shape the NIS environment.