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We take a new perspective to conceptualize and empirically validate firm and government-sponsored-institutions (GSIs) collaboration for small and medium enterprises (SMEs) as a vital form of social innovation in emerging economies. Moreover, we identify a social innovation ecosystem in which firm-GSI collaboration plays crucial roles in nurturing reciprocal knowledge sharing. Specifically, GSIs provide SMEs research support and knowledge through collaborating with SMEs in improving their economic and social innovation output, which in turn, motivates SMEs to give back to the society through their subsequent knowledge sharing with other firms. We develop a framework to theorize the interdependent relationships between firm-GSI collaborations, economic and social innovation outputs, and subsequent knowledge sharing of participating firms. In addition, we identify internal research and development (R&D …