The innovation ecosystem plays a crucial role in the success of startups, but these ecosystems are facing operational and strategic obstacles that limit their potential. The operational difficulties include an inability to effectively support startups leading to high failure rates, low engagement from startups, and resource-intensive reporting processes. On the strategic front, innovation ecosystems face intense competition and struggle to scale their efforts and establish sustainable business models, which often rely heavily on government funding. These challenges impact a wide range of players in the ecosystem, including incubators, accelerators, universities, and enterprise innovation departments. Addressing these challenges can lead to a thriving startup ecosystem, boosting economic growth and driving progress. By investing in the solution of these significant problems, the innovation ecosystem has the potential to unleash its full potential and drive positive change.