The relevance and impact of theories of innovation systems on policy need to put innovation on the development agenda and in the development process and
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isbn 978-92-64-08891-7
92 2010 08 1 P
innovation and the Development Agenda Innovation drives long-term economic growth. It has a crucial role to play as global economies recover from the current financial crisis. This book examines the role of innovation in developing countries, with a focus on Africa. It investigates innovation systems and their application; the key role of knowledge in innovation for development; and the importance of comparable countrystudies and official statistics on innovation. It stresses the need for innovation to become part of a
comprehensive development agenda, and makes recommendations for promoting activities in both the formal and informal sectors, with the aim of transforming agriculture into a knowledge-based industry capable of stimulating economic growth. Innovation and the Development Agenda is an important component of the overall OECD Innovation Strategy, which seeks to create stronger and more sustainable growth, while addressing the key global challenges of the 21st century. It is also part of the Innovation, Technology, and Society programme of IDRC. For more information about the OECD Innovation Strategy, see .For more information on IDRC programmes and to view this report, see .The full text of this book is available on line via these links:
ww ww w.sourceoecd.org/scienceIT/9789264088917 Those with access to all OECD books on line should use this link: ww w.sourceoecd.org/9789264088917sou rceOECD is the OECD's online library of books, periodicals and statistical databases.For more information about this award-winning service and free trials, ask your librarian, or write to us at
sou rceOECD@oecd.org. i nnovation and the Development Agendainnovation and the D evelopment AgendaEdited by Erika Kraemer-Mbula and Watu Wamae
innovation and the DevelopmentAgenda
international Development Research CentreORGAnisATiOn FOR ECOnOMiC CO-OPERATiOn
AnD DEVELOPMEnT
CAnADAs inTERnATiOnAL DEVELOPMEnT REsEARCH CEnTRE www.idrc.caPhoto credits:
www.oecd.org/publishing/corrigenda rights@oecd.org info@copyright.comcontact@cfcopies.com This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or the views of Canada's International Development ResearchCentre or the members of its board of governors.
FOREWORD ...
innOVATiOn AnD THE DEVELOPMEnT AGEnDA ... © OECD/iDRC 2010Foreword
innovation in developing economies is a means of wealth and job creation and of economic growth. However, this innovation may be managed quite differently from technological innovation, which is based in developed and emerging economies on the formal creation of knowledge through research and development (R&D). non-technological innovation and the use of existing knowledge to create value in the marketplace are more likely to be found in the developing world, where these activities are not tracked as part of official statistics. in January 2009, an OECD-UnEsCO workshop was held on innovation for Development: Converting Knowledge to Value. it examined the role of knowledge in innovation, its place in innovation systems and in innovation strategies, and ways of supporting north-south knowledge flows. it gave rise to a wide-ranging discussion which made the point that case studies, country reports, official surveys, analysis and informed discussion were needed to improve innovation activities and their connections locally and globally in order to create more value and allow countries to innovate out of poverty. A recurring observation was that innovation is frequently driven by entrepreneurs who work in the informal economy, where there is significant economic activity. A key conclusion emerging from the discussions was that there will be too little innovation and entrepreneurship in developing countries in the absence of major public support through institutions, policies and programmes, and services. it is therefore of strategic importance to get innovation, wherever it occurs, onto the development agenda and into public policy and programming. in April 2009, an expert meeting, innovating Out of Poverty, was held, by the OECD Development Co-operation Directorate (DCD). Discussion ranged from promoting the neglected agriculture sector as a knowledge-based industry connected to other parts of the economy through information and communication technologies (iCTs) to creating a new industry by importing silk production methods from india to Rwanda, to more productive ways of growing rice. As in the earlier workshop, there was a call for more case studies on innovation activities and for analysis and sharing of this knowledge in the developing world. it was recognised that much innovation consisted of problem solving by entrepreneurs who use their local knowledge and that it is necessary to understand and support this. 4ACKnOWLEDGEMEnTs ...
innOVATiOn AnD THE DEVELOPMEnT AGEnDA ... © OECD/iDRC 2010Acknowledgements
Many people were involved in the two meetings that were the basis for this volume, and it is possible to mention only a few. The January 2009 Workshop, innovation for Development: Converting Knowledge to Value, was a joint OECD-UnEsCO meeting. Pier Carlo Padoan, Deputy secretary General and Chief Economist of the OECD, and Walter Erdelen, then Assistant Director-General for natural sciences at UnEsCO, provided clear direction and the expectations of their respective organisations for the outcomes of the meeting. The meeting was organised by Gang Zhang from the Directorate for science, Technology and industry (DsTi), OECD; Tony Marjoram from the basic and Engineering sciences Division of UnEsCO; and Fred Gault and Jean Woo, then from the Canadian international Development Research Centre (iDRC). Funding was provided by the iDRC, the OECD and UnEsCO and, through support to UnEsCO, the swedish international Development Co-operation Agency (sida). susanne Huttner, then Director of DsTi, supported the workshop, and the OECD commissioned four background papers which served as inputs to both the workshop and the expert meeting in April 2009. Revised versions of three of these papers can be found in Chapters 5, 6 and 7 of this publication. The iDRC commissioned the preparation of the Rapporteurs Report which was included in the Workshop summary published by UnEsCO, and three reports are included in this publication as Chapters 2, 3 and 4, with additional material from a fourth OECD background paper. The book is an OECD-iDRC joint publication and the work was carried out with the aid of a grant from the iDRC. The expert meeting, innovating Out of Poverty, was initiated by Richard Carey, then Director of the Development Co-operation Directorate (DCD) of the OECD, with funding and support from the Government of Japan. Management of the meeting was provided by Kaori Miyamoto with colleagues from DCD, in co-operation with DsTi and the OECDTrade and Agriculture Directorate (TAD).
The chairperson of the expert meeting, Calestous Juma, produced a Chairmans summary following the meeting which argued the case for treating agriculture, supported by an information and communications technology (iCT) infrastructure, as a knowledge- intensive industry. He distributed the summary to senior members of governments inAfrica.
A final acknowledgement goes to all of the people from developing and developed countries, in the public and private sectors, and from international organisations such as the African Development bank, the Consultative Group on international Agricultural Research (CGiAR), the international Federation of Agricultural Producers (iFAP), the international Fund for Agricultural Development (iFAD), the UK Royal society, the Un Conference on Trade and Development (UnCTAD), and the World bank, that made these two meetings seminal events.TAbLE OF COnTEnTs ...
innOVATiOn AnD THE DEVELOPMEnT AGEnDA ... © OECD/iDRC 2010Table of Contents
background and rationale ........................................................................ ........................ 14 Areas for action ........................................................................ ....................................... 17 Rising to the challenges ........................................................................ ........................... 18The contribution of this volume ........................................................................
.............. 23 References ....................................................................... ................................................ 26 introduction ....................................................................... .............................................. 30Key theoretical
issues ....................................................................... ............................... 30Key issues for innovation po
licy and implementation .................................................... 32 Conclusion ....................................................................... ................................................ 35 References ....................................................................... ................................................ 37 introduction ....................................................................... .............................................. 40 Applying the innovation systems concept to developing countries ................................. 40 What are the implications of innovation systems and innovation practicesthinking for developing countries? ........................................................................
.......... 44 Changing innovation dynamics and implications for learning andinnovation processes in developing countries ................................................................. 50
The relevance and impact of theories of innovation systems on policy in sub-saharan Africa ........................................................................ ............................. 53 Conclusion ....................................................................... ................................................ 56 References ....................................................................... ................................................ 58 introduction ....................................................................... .............................................. 66 The role of extractive industries and infrastructure in innovation andtechnological learning in sub-saharan Africa ................................................................. 66
A large informal sector and converting knowledge to value ........................................... 74
Conclusion ....................................................................... ................................................ 83 References ....................................................................... ................................................ 86 8Chapter 5. Knowledge Policy for Development .......................................................... 91
Chapter 6. Facilitating north-south Knowledge sharing:Conditions for Enhanced Knowledge Flows ............................................................. 111
Chapter 7. innovation strategies in Developing Countries ..................................... 133