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The purpose of this chapter is to explore the phenomenon of innovation in a particular setting in Japan, and more specifically to trace a local initiative toward the creation of an “innovation ecosystem” in a large city and its surrounding region in Western Japan, with the aim of fostering entrepreneurship and economic revitalization.

The analysis in this chapter is based on ethnographic fieldwork, including participant-observation in meetings and events held to promote entrepreneurship and collaboration in the region, as well as interviews with city officials, managers, and entrepreneurs related to the activities of the creation of the “innovation ecosystem.”

In the chapter, I show how the emergence of the ecosystem metaphor for business innovation informs practices and imaginaries in which relations, co-creation, and natural growth become central as models of and for innovation processes in a context of crisis, in ways that generate not only innovation but the ecosystem itself.

The chapter provides historical and social context to the metaphor of the innovation ecosystem that is receiving increasing interest globally, and provides insights into how innovation activities and the enacting of the “innovation ecosystem” take place in practice.