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Millions of consumers around the world annually spend tens of billions of dollars developing household sector (HHS) innovations. However, the diffusion of these innovations is below the social optimum. Policies to increase diffusion have made a limited impact. This has been partly attributed to the lack of a systems perspective. Based on an extensive literature review, expert interviews, and triangulation with empirical qualitative observations, we develop an ecosystem framework for HHS innovation and entrepreneurship. We find that the fundamental elements affecting HHS innovation and entrepreneurship are (1) rules and regulation,(2) cultural norms and values,(3) social capital,(4) human capital,(5) innovation tools,(6) producers and industry,(7)(online) platforms and workshops, and (8) general resources and infrastructure. Our framework can guide future studies in developing a holistic perspective toward HHS innovation policy.