A comparative analysis of digital innovation ecosystems

In this paper, we examine how Apple and Google have used third-party led innovation to create viable digital innovation ecosystems, through the App Store and the Android platform respectively. In many ways, this is similar to the strategy adopted in an earlier decade by NTT DoCoMo in the mobile communications space, through the iMode platform. We compare and contrast alternative approaches to accelerating innovation through such an ecosystem oriented approach, and outline some key lessons for content providers, developers, and other stakeholders. We analyze these developments through the theories of network externalities, social network communication theory, and related frameworks in strategic management.