This paper contributes insights into the debate concerning the emergence of innovation ecosystems. More specifically, we propose a knowledge-intensive innovation ecosystem. Building on prior research on collective action, innovation governance, and knowledge-intensive entrepreneurship, we elaborate on existing theory by presenting a conceptual framework to articulate why ecosystems require the combination of top-down exploration of policy alternatives by policymakers, together with bottom-up knowledge-intensive entrepreneurial activity in order to progress towards sustainable development. Through our case study of the Maritime Cluster of West Sweden, we propose that sustained incentives for knowledge-intensive innovative entrepreneurship, along with more experimentation and new forms of collaboration by policymakers in the Maritime Cluster, are needed in order for progress towards innovation-led sustainable development to occur. © 2020 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.