The innovation has become a part of a new, evolving and complex organizational environment by including diverse actors from different sectors of activity. The innovation stands as the strategy for socio-economic development of industries, cities or regions and it involves several actors both from public and private sectors with heterogeneous motivations and expectations. Consequently, such ambitious innovations become complex that their development and implementation require the coordination and collaboration of different actors for working on various inter-connected technological and non-technological issues. This dissertation in management attempts to explore the development and application of the business model concept in public private ecosystems for innovation through the action research methodology. The process of action research is progressive and the emergence of each research question is accompanied by appropriate actions such as literature review, applying complementary methodologies, data collection and analysis. This dissertation provides several theoretical contributions to management science and delivers several suggestions for management practice. This dissertation provides a conceptual framework for the business model of ecosystem, explains the business model innovation mechanisms, suggests a management tool for evaluating the cost-revenue structure of the public private ecosystems and discusses the longitudinal dynamics of the innovation ecosystem.