The growing complexity of urban challenges and emerging technologies has made innovation ecosystems essential for urban management. This study aimed to develop a context-specific model for the urban innovation ecosystem of Tehran Municipality. Using a sequential exploratory mixed-method design, the research was conducted in three stages. First, meta-synthesis and systematic review were used to identify initial components and indicators. Second, three rounds of fuzzy Delphi with 16 experts evaluated the indicators, resulting in the confirmation of 78 indicators within 12 components. Third, Interpretive Structural Modeling (ISM) and MICMAC analysis were applied to determine structural relationships, driving power, and dependence among the components. The findings showed that governance and actors constitute the foundational level and serve as the main drivers of the ecosystem. Human factors, social capital, culture, technology, and finance form the next level, followed by interactions and innovation. Shared value and performance, resilience, and sustainable smart products and services represent the final outcomes. Therefore, developing Tehran Municipality’s innovation ecosystem should begin with strengthening governance and organizing key actors, followed by enhancing human, social, technological, and financial capacities to promote innovation, resilience, value creation, and sustainable smart services.