This paper examines the concept of entrepreneurial ecosystems and the more established concept of systems of innovation and considers their application in Latin America, where many countries are currently experiencing political and economic upheaval. The paper finds that current entrepreneurial ecosystem literature is not directly applicable to most of Latin America, as it takes for granted features of an advanced economy, while the innovation system literature favours studies of well-functioning economies and innovation in high-technology sectors. Findings suggest that network and institutional perspectives may enrich both concepts in theoretical and analytical term and complementary innovation system and entrepreneurial ecosystem perspectives appear well suited in further defining the needs and demands of local production structures and existing resource and knowledge capabilities. The paper suggests the need for measurable transformations in Latin American production and support structures that include embracing social, organisational, and interactional innovation and socially oriented entrepreneurial activity. The paper encourages further research to identify the drivers and economic consequences of distinctive Latin American entrepreneurial ecosystems and for researchers to adopt an evolutionary perspective that acknowledges historical trajectories in different regions, where local social, political, and economic regimes will influence the trajectory and success of future innovation policy initiatives.
