Christopher Foster

Greening the innovation process

This paper reports the results of a preliminary investigation into how green issues are influencing the process of research and development (R&D) as a contributor to innovation. R&D and other managers in UK companies were interviewed about their work, the methods used to select and manage that work and the way in which the green agenda is affecting the organization and its activities. The investigation looked at changes the ‘green agenda’ may be making in the innovation framework of firms, and differences between the flows of signals about green issues and those about other product performance issues around these frameworks. The paper concludes that, if the process of developing greener products and services is to be speeded up, then supply companies with the capacity and will to innovate need to push green issues on to the agenda of their dialogue with users in order actively to seek opportunities for progress. Copyright

New models of inclusive innovation for development

This special issue of Innovation and Development focuses on inclusive innovation; specifically on analysis of the new models of this form of innovation which are emerging. After discussing the growing need for research into those models, this editorial paper interrogates the meaning of ‘inclusive innovation’ and what it means to understand inclusive innovation in terms of models. The editorial then outlines the contribution of the papers that make up this special issue before drawing out some lessons for inclusive innovation policy and practice, and discussing future research priorities.

Innovation and scaling of ICT for the bottom-of-the-pyramid

Scaling represents successful diffusion that ensures sizeable impact and earnings from information and communication technology (ICT) innovations in emerging markets. Practice can still be shaped by dualistic views – innovation vs diffusion, pilot vs scale-up, lead firm vs other actors, technical vs social. Synthesising the literature that challenges these dualities, this paper creates a systemic perspective that is particularly appropriate for scaling of ICT to bottom-of-the-pyramid (BoP) markets. That perspective is then instantiated through the case study of a successfully-scaled ICT innovation that has reached millions of poor consumers: the Kenyan m-money system, M-Pesa. It finds that scaling of this ICT system can be understood as a four-stage process of exploratory, incremental then aggressive growth, followed by (attempted) standardisation. Throughout these stages of scaling, ongoing adaptive innovations have been fundamental and have been both necessitated and shaped by the BoP context. These innovations have been more socio-technical than technical, and have emerged from a growing variety of actors and locations closer to poor consumers than the lead firm. The lead firm has buffered the unfamiliarity of BoP markets by approaching them through the ‘middle-of-the-pyramid’ and by intensive learning. At times, its planned ‘shifts’ in scaling strategy have triggered adaptive innovations. At other times, emergent innovations and learning lead to incremental ‘drifts’ in lead firm strategy. ICT firms wishing to scale goods and services for BoP markets must therefore recognise the multi-locational, continuous, and emergent nature of innovation, and develop processes to monitor and address those innovations.

Analyzing policy for inclusive innovation: the mobile sector and base-of-the-pyramid markets in Kenya

Recent interest in inclusive innovation to serve base-of-the-pyramid markets has so far produced relatively little evidence about the role of policy. Drawing on cases from Kenyas mobile phone sector that have successfully scaled innovations to poor consumers, we suggest that policy-making is not only present, but can also have a significant role in shaping and supporting inclusive innovation systems. In these cases, inclusive innovation has been built upon a reinforcing circle of adaptive innovation, dynamic competition, and presence of innovation intermediaries within poor communities. Following regulatory interventions that helped initiate markets, policy has supported these facilitators of inclusive innovation in various ways. But implementation gaps can dampen innovation or allow it to proceed in directions that undermine quality. Overall, this paper offers a systematic approach for analyzing the role of policy in inclusive innovation, an example of the multiple domains that must be integrated if inclusive innovation is to be purposely supported, and evidence that the implementation of such policies matters as much as their content.

Environmental innovation in industry: the importance of environmentally-driven users

This paper is concerned with the extent to which firms are integrating environmental considerations into their innovation process. After making some general observations on environmentally-linked technological innovations in industry, we review the results of research we have conducted in the UK. From this research, we conclude that, although such integration is indeed taking place to some extent, it is not necessarily leading to rapid environmental improvement and we identify some of the obstacles that are slowing progress. We suggest that more rapid improvement through environmental innovation is dependent on growth in the body of environmentally-driven users, a process that, to date, seems to be fertilised best by strong regulation. This would lead innovating firms to look more actively at environmental performance as a means of adding value instead of simply integrating environment into compliance checking procedures.

Researching ICT micro-enterprise in developing countries: themes, wider concepts and future directions

The purpose of this paper is to examine the current state of knowledge on ICT micro‐enterprise in developing countries and provide guidance for future research. It does this by reviewing two strands of literature. In the first, it reviews the literature related to ICT micro‐enterprises, focussing particularly on two sub‐sectors that might be considered successful, mobile entrepreneurship and the Nigerian video‐film industry. It draws out three key themes that are addressed in the literature – the significance of local networks and supply chains; strategies of niches and appropriation; and the importance of context.

Nurturing user–producer interaction: inclusive innovation flows in a low-income mobile phone market

Understandings of inclusive innovation in developing country low-income markets have typically taken one of two perspectives. On the one hand, a business perspective on the role of top-down, strategic innovation from larger-firm actors. And on the other hand, a more developmental perspective that highlights the role localized practices play in making new goods and services applicable to local needs. Both are demonstrably important to successful inclusive innovation but, to date, there has been little analysis of the link between these two perspectives. The goal of this paper is to explore the interaction between top-down and localized elements of innovation, and to provide an understanding of the conditions by which these two perspectives might be complementary. Drawing on the case of the mobile phone sector in Kenya, and adapting Lundvalls concept of user–producer interaction, a conceptual model to understand such innovation flows is outlined. This highlights the centrality of operational links between producers and users which serve as a medium for interactive learning.

Digital Control in Value Chains: Challenges of Connectivity for East African Firms

Abstract In recent years, Internet connectivity has greatly improved across the African continent. This article examines the consequences that this shift has had for East African firms that are part of global value chains (GVCs). Prior work yielded contradictory expectations: firms might benefit from connectivity through increased efficiencies and improved access to markets, although they might also be further marginalized through increasing control of lead firms. Drawing on extensive qualitative research in Kenya and Rwanda, including 264 interviews, we examine 3 sectors (tea, tourism, and business process outsourcing) exploring overarching, cross-cutting themes. The findings support more pessimistic expectations: small African producers are only thinly digitally integrated in GVCs. Moreover, shifting modes of value chain governance, supported by lead firms and facilitated by digital information platforms and data standards are leading to new challenges for firms looking to digitally integrate. Nevertheless, we also find examples in these sectors of opportunities where small firms are able to cater to emerging niche customers, and local or regional markets. Overall, the study shows that improving connectivity does not inherently benefit African firms in GVCs without support for complementary capacity and competitive advantages.

Drivers of Inclusive Innovation in Developing Country Markets: A Policy Perspective

A few years ago, the emergence of a lower income country such as Kenya as an important ICT innovator might not have seemed feasible. Yet today, Kenya regularly makes headlines around ICT innovation and, as indicated in the previous chapter, a number of these innovations have specifically impacted low-income groups such as mobile money, mobile microfinance models and rural mobile applications.