Innovation and Development: Towards an Agenda Presented by: Prof. Gillian Marcelle Wits Business School 25 February 2010

Common wisdom Innovation defined as the production, diffusion and use of new and economically useful knowledge Innovation strategies matter for development. Innovation has been shown to be the foundation for enhanced competitiveness, industrial and technological upgrading and a factor stimulating structural change Strategies used in the developing world involve capability building and technological upgrading for which learning processes are critical inputs Innovation strategies help with structural changes, responsiveness to external challenges, such as the changing nature of international markets and trade regimes Innovation can provide solutions for the effective provision of essential public goods, such as education, housing and health. Innovation can assist with the effort to balance common goals of producing economic growth & redistribution of wealth

Intellectual Context Innovation studies community is undergoing reflective review of its contribution to knowledge and impact (SPRU 40th anniversary, STEPS progamme (Morlachi and Martin 2009). In parallel, development studies empahsising a more humane development agenda (Emmerij 2006). Within development, contestation between advocates of a developmental state and proponents of private-sector led models. Disconnect between innovation and entrepreneurship has been recognized as a challenge for development (Lazonick 2008).

Points of Entry Venues of engagement, such as organizing academic conferences. In February 2010, Wits University organized an international symposium that aimed to explicitly connect the innovation studies agenda to development debates and to offer the specific context of Africa and South Africa as an empirical laboratory for investigating aspects of innovation studies practice at national and regional levels. The symposium aimed to provide a platform for knowledge exchange among academics, policy makers and the business community on the interaction among: 1. science, technology and innovation activities (‘practice’) 2. public policies to support and enhance innovation activities (‘policy’) 3. the efforts of the academic innovation studies community to study research and innovation practice and policy and to mediate between them (‘research’) and as a cross-cutting theme 4. the relevance and impact of innovation on development (“development’)

Senior decision makers curious enough to take a risks on an interdisciplinary venture of this type. Disciplinary boundaries are hard-wired and coded. It is difficult to engage across disciplines where the language and modes of knowledge production are very varied. Starting assumptions can begin with mistrust and an absence of shared understanding or a belief in a shared outcome. Definitions of success vary across disciplinary boundaries. The type of networking ability and systems thinking that is required at national level to have a coherent innovation eco-system is also required within higher education. What is required?

We are still at the proof of concept stage where the benefits of collaboration and the strategies of cooperation and competition are very rudimentary. The proponents of new ways of engagement will have to gain legitimacy in the international and local knowledge production networks that already exist. Communities of practice are built around strong trust relationships and these require many years of gestation and move though phases. In this field points of reference include work of the UN Millennium Project, research from the Globelics network and research programmes of SPRU, the Open University, UNU-MERIT and UN-WIDER to name a few. Achieving a new agenda will require engagement with private sector firms, institutions, individuals and agencies that may otherwise not be defined as part of the innovation community. This type of multi stakeholder engagement is certainly not without its challenges. Constraints and Challenges

Existing networks and systems of knowledge production privileges advanced industrial countries. The strengths of networks in Europe and North America derive from higher levels of resources, critical mass of scholars and established research traditions and values (academic freedom etc). In theory building and agenda development processes ideas emerge, are contested, take root, are developed further. In a Kuhnian sense some ideas may become part of a dominant paradigm. This process requires patience and fortitude and can challenge the ability of scholars to sustain themselves on the margin of their disciplines and institutions At periods in the cycle where there is more acceptance of the ideas, the revolutionary nature of the ideas and the trenchancy of the critique may itself be muted. Acceptance and influence morph into co-optation. Operating from the South has a specific set of challenges in terms of paucity of resources, rigid disciplinary boundaries and the propensity of southern-based scholars to network more with extra-regional partners than within their solidarity zone. Points of resistance

If scholars shape agendas and can be agents of change by confronting established categories and prompting a confrontation of ideas and values, we can be part of the stimulating factors that trigger change. A number of confluences are helpful 1.the economic crisis and the reflection that it prompted 2.challenges to the established “hegemonic” theories of economic growth 3.innovation is itself on the agenda of firms 4.environmental stewardship and intergenerational responsibility has a higher priority 5.policy makers have move to a greater understanding of the importance of learning, capability building and technological upgrading for economic growth, competitiveness and improvements in social services delivery 6.demand for greater social inclusion within and among countries 7.changes in governance of development institutions 8.solidarity among emerging countries Why Now?

If innovation is of value because it has the potential and is a requirement for balanced, equitable growth that is not environmentally damaging, it is also necessary to understand the conditions under which this potential is realized. This does require private sector firms to move beyond a narrow profit maximizing model and be concerned with social value and intergenerational wealth creation. Values and Objectives

Research Programme Shift the attention from scientific and technological inputs to innovation processes and outputs Changes the focus of analysis from the internal workings of an economic system to the way the system interacts with the outside world; can assist in identifying which critical elements are missing within a country or whether there are imbalances and distortions and hence identify obstacles of a well-functioning system Enables the identification and development of new policy capabilities required to set strategic priorities and to translate these into incentive schemes and institutional change, as international markets change in the course of globalization and as a country reaches higher stages of economic development. The need for policy initiatives to respond to the very specific needs, priorities and capabilities of a developing country. Process of building up indigenous capacity

It may be possible to build on the momentum arising from the IFD symposium to develop a plan of action or a framework from which to proceed. Any action is likely to proceed from a multipolar basis, drawing on the passion and areas of interest of various scholars. Sharing of experience and lessons is a prerequisite for building community and that ought to be through formal and informal mechanisms student exchanges, joint teaching programmes faculty exchanges. We can be ambitious in dreaming also about developing institutions in the South with an explicit developmental agenda. That particular road is littered with examples that have not worked, but perhaps the time is now …… Next Steps

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