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Business ecosystems of distributed innovation first became prominent in the
high-tech and information-intensive industries, and they have since spread, sometimes
to seemingly unlikely areas. In textiles and clothing, for example, W.L. Gore &
Associates provides a platform -- namely Gore-Tex, a breathable, waterproof fabric, as
well as the rules for its use -- that dozens of companies have licensed to create various
products, including outerwear and shoes (Boudreau and Lakhani, 2009). But the extent
to which business ecosystems will play an important role throughout different
industries remains to be seen. To be sure, certain markets present inherent challenges. In
heavily regulated industries, for instance, an integrated corporation that is responsible
and accountable for any given product might be a more effective organizational form
than a multi-agent, recombinant ecosystem. That said, the potential benefits of
distributed innovation must be recognized, and the field of organization design must
broaden its traditional focus on the individual firm to encompass this compelling new
approach for creating value.