Supporting Inclusive Innovation: Developing Improved Analytical Methods and STI Policy Instruments to Operationalise Inclusive Innovation

In this paper we consider the "inclusive innovation" concept and the growing interest among academics and practitioners in the role of innovation in socio-economic development. 'Inclusive innovation' i.e. the development of new products, services, processes and business models aimed at resource-poor individuals or groups is considered to present a positive contribution to better life conditions and upward mobility among low-income or resource-poor communities. The gap that was identified in the literature is that there remains a lack of analytical methods to analyse inclusive innovation opportunities from a system perspective. We argue that there is a need for developing a systems and network approach to understand systems that perpetuate inequalities and poverty based on the terms and conditions of inclusion and exclusion. To this end, the contribution made in this paper is to create a framework on which basis the innovation systems approach may be contrasted and compared with approaches of pro-poor value chain development. The aim here is to explore how the value chain approach may be used or integrated in the analysis of inclusive innovation systems. The methodological approach taken in this paper has its roots in the congruence analysis approach. Through this approach, we consider the explicit development of inclusive practices in innovation systems and value chains. We draw a number of general propositions towards conceptualizing and operationalizing inclusive innovation within the Innovation System (IS) and (Global) Value Chain (VC) frameworks. This is followed up with some proposals of how the IS and GVC approaches could be used in unison to the development of an analytical framework for operationalizing inclusive innovation.