Innovation in business ecosystems - essential but is it sufficient?

I have tried to come up with a very simplified model of a business ecosystem.
A business ecosystem consists of all interacting organizations and individuals in the context of a particular business or market, including governing bodies.  The whole business ecosystem will co-evolve, driven by innovation in the supplier organizations and the governing bodies.
In this article, I will discuss this internal innovation and in a future article, I will explain why innovation is sometimes not sufficient.

Open innovation ecosystems

Jørn Bang Andersen makes some interesting statements in this article: 
"entrepreneurs-of-the-world-unite-in-eco-systems"

"The  success stories from Google’s android, Apple’s iphone, Nokia’s fall and ARM challenging Intel all point in one direction, namely that busines models organized around a more or less open innovation ecosystem are becoming the winning recipe within so far the global information and communication technology industries."

"Eco-systems seem more like ‘black holes in the universe’. Once formed they can continue to grow by absorbing additional matter."

I strongly agree with this.

What is a business ecosystem?

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The term ecosystem comes from nature and the definition according to wikipedia is:

"Ecosystems are functional units consisting of living things in a given area, non-living chemical and physical factors of their environment, linked together through nutrient cycle and energy flow."  And: "The entire array of organisms inhabiting a particular ecosystem is called a community."