Innovation for Inclusive Growth: Towards a Theoretical Framework and a Research Agenda

Abstract

Inclusive innovation, which we define as innovation that benefits the disenfranchised, is a process as well as a performance outcome. Consideration of inclusive innovation points to inequalities that may arise in the development and commercialization of innovations, and also acknowledges the inequalities that may occur as a result of value creation and capture. We outline opportunities for the development of theory and empirical research around this construct in the fields of entrepreneurship, strategy, and marketing. We aim for a synthesis in views of inclusive innovation and call for future research that deals directly with value creation and the distributional consequences of innovation.

Inclusive innovation in the bioeconomy: concepts and directions for research

“…The term 'the most needy' is deliberately relative and general, and it may seem vague compared to the widely used 'bottom of the pyramid' (BoP) criterion (Prahalad and Ramaswamy 2004; see also Kaplinsky 2011;George, McGahan, and Prabhu 2012). Following Cozzens and Sutz (2012), we are sceptical of BoP-centred definitions.…”

“…This concern does not entail abandoning innovation studies' concern with the motivations of -and processes involved in -innovation: motivations and processes are arguably essential drivers of inclusive innovation. The dotted lines in Figure 1 represent preconditions that may affect innovation and innovations' ability to improve the most needy's lives (see George, McGahan, and Prabhu 2012;Heeks et al 2013Heeks et al , 2014. This special issue seeks to highlight the importance of such preconditions.…”

“…Couldn't innovation be inclusive if merely it attempted, unsuccessfully, to improve the lives of the most needy? George, McGahan, and Prabhu (2012) argue, following their aspirationcentred definition of inclusive innovation, that 'aspiring to inclusivity is valuable even when opportunity is not ultimately realised' (664). George et al do not explain why inclusivity is valuable when opportunity is not realised, but one may argue that aspirations are valuable because they generate actions that, eventually, may improve the lives of the most needy.…”

Institutional Legitimacy, Cross-Border Trade and Institutional Voids: Insights from the Cocoa Industry in Ghana

“…The first school of thought argues that a lack of institutional facilities creates conditions for frugal innovation to occur while the harsh institutional environment creates conditions for low-cost and efficient producers to emerge to cater for the underserved markets (George, McGahan and Prabhu, 2012;Radjou, Prabhu and Ahuja, 2012). An important aspect of this view is that firms that are able to operate in such a harsh environment outperform rivals in an environment characterised by institutional voids (Lall, 1983).…”

What is the effect of university education on chances to be self-employed in transitional countries?: Instrumental variable analysis of cross-sectional sample of 29 nations

“…New entrepreneurial enterprises are more efficient with sales, and employment increases faster in these enterprises compared to state-owned or privatized companies (McMillan and Christopher 2002). Private entrepreneurship provides an important protection again income shocks associated with transitional processes by providing an alternative source of income and employment (George et al 2012). Consequently, McMillan and Woodruff (2002, p. 154) concluded, Bthe success or failure of a transition economy can be traced in large part to the performance of its entrepreneurs^.…”