Moving forward while swaying left and right: How to govern national innovation systems-catalysed innovation ecosystems?

There is a burgeoning literature arguing that addressing grand challenges, such as de-globalization, requires a set of complementary actors to build innovation ecosystems (IE), which are also strategically integrated into the national innovation system (NIS). We conceptualize this specific systemic phenomenon as a new type of IE—NIS-catalysed IE—whose sustainable growth is said to be constantly hindered by dependent yet opposing tensions. The current literature provides fruitful insights into governing paradoxical tensions; however, some taken-for-granted theoretical assumptions within it are problematic when examining the relationship between salient paradoxes embodied in NIS-catalysed IE and effective governance mechanisms. Drawing on a single longitudinal case study of Baidu-led autonomous driving IE in China (2013-2024), we revealed that the NIS-catalysed AD IE has been successfully navigated over three stages despite the overarching efficiency-security paradox. To that end, three corresponding governance/response mechanisms proved effective: 1) technological platformization, 2) institutional diversification, and 3) market marginalization. We integrated our novel findings of three virtuous circles (trigger → paradox → response) into an oscillating model of NIS-catalysed IE governance. Overall, our study contributes to the theoretical nexus of NIS and IE, paradox governance at the ecosystem level, and the ecosystem-as-structure paradigm. • Defines the National Innovation Systems-catalysed Innovation Ecosystems (NIS-catalysed IEs). • Reveals how NIS-catalysed AD IEs navigate the enduring efficiency-security paradox. • Identifies platformization, institutional diversification, market marginalization. • Proposes an oscillating governance model linking triggers, paradoxes and responses. • Advances theoretical insights connecting NIS, IEs and paradox governance literature.