Economic Challenges of Cybersecurity Innovations Pursuing an Ecosystems Approach

The adoption of innovative cybersecurity solutions is essential for protecting digital infrastructures. However, it is often confronted with significant challenges, especially when these innovations aim to establish collaborative ecosystems. Yet, to be effective, many security innovations like identity and trust infrastructures must build ecosystems of diverse participants. In this context, economic aspects are frequently overlooked in favor of an excessive focus on technical excellence. To address this imbalance, we examine the economic obstacles inherent in the diffusion of security innovations with an ecosystem approach. Utilizing theoretical frameworks, we analyze general challenges including organizational acceptance and information asymmetries as well as specific issues associated with ecosystem approaches, such as network effects and governance structures. Building on insights from a research project, we discuss strategies to address these challenges. Our findings underline the importance of integrating economic perspectives into the development and adoption of sustainable cybersecurity infrastructures.