The rapid expansion of digital technologies has accelerated the development of digital innovation ecosystems that increasingly influence sustainable economic transformation within contemporary digital economies. Digital innovation ecosystems facilitate collaborative innovation, ecosystem integration, technological coordination, and knowledge exchange among interconnected actors operating within digitally mediated environments. The findings indicate that digital innovation ecosystems contribute positively to sustainable economic development by strengthening innovation capability, collaborative integration, digital competitiveness, and ecosystem resilience. In addition, ecosystem-based innovation supports sustainable entrepreneurship, technological modernization, and long-term economic transformation through coordinated innovation systems and collaborative value creation. However, the review also identifies significant governance and ecosystem challenges affecting innovation sustainability, including weak coordination mechanisms, unequal digital capability, fragmented institutional integration, and ecosystem readiness disparities.
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