Purpose Although ecosystems have been researched extensively over the past decade, we know little about how they should be organised. Focusing on a knowledge ecosystem comprising a university and a regional strategic network (RSN), this paper aims to describe and discuss the mechanisms for knowledge development in knowledge ecosystems. Design/methodology/approach This paper studies the integration of a university into a Swedish RSN. Data were collected through interviews with representatives of the university, the RSN and all firms comprising the RSN. A qualitative content analysis helped to detect mechanisms for knowledge development. Findings Two reinforcing mechanisms for knowledge development in the knowledge ecosystem are identified: structure and openness, which relate to insight and outlook, respectively. The findings also indicate a knowledge division, with the university representing the transfer of knowledge capabilities as a linear process, whereas the content-related knowledge is collaborative. Originality/value This paper contributes to research on knowledge ecosystems by describing how their organisation is based on a number of contradictions (structure and openness, insight and outlook, linearity and collaboration) to accomplish the development of knowledge capabilities and content-related knowledge.