This paper explores talent transformation from a pool of entrepreneurial talent to successful entrepreneurs as a central characteristic of a successful entrepreneurial ecosystem. To this end, we link related literature streams around cluster theory and regional innovation systems and expand them by drawing on the literature of entrepreneurial ecosystems. Starting out, we review literature on contextual factors that drive the success of entrepreneurial ecosystems and employ qualitative expert interviews to uncover nuances of a qualitative entrepreneurial ecosystem. Based on the interviews and by interlinking the factors identified in literature to have a positive influence on entrepreneurial ecosystems, we introduce talent transformation as a potential key process for the flourishing of entrepreneurial ecosystems and find the social and contextual business environment to be the main independent co-factors. By investigating the European best-practice example of the Nordic countries, we develop and introduce a three-phased talent transformation process and make concrete recommendations for entrepreneurial ecosystem development that can be applied in any geographic context.