Innovation is a key element of industrialisation and catch-up in developing countries, however its diffusion and adoption is neither costless nor unconditional. In the past decades development indicators have improved in most Low-income Countries (LICs) and the concept of innovation has shifted from being an end of development to a means of it. In this study the authors reviewed the state of art of the research in the diffusion of innovation in the private sectors (industry and services) in LICs and identified gaps for future research. From an initial sample of 7,385 studies, the systematic review protocol yielded 81 studies which provided case studies and empirical evidence to answer three questions: i. What are the barriers to innovation creation and diffusion in LICs? ii. What are the channels of innovation diffusion within LICs? iii. What are the channels of diffusion of external innovation to LICs?
Zanello, G.; Fu, X.; Mohnen, P.; Ventresca, M. The diffusion of innovation in the private sectors in Low-income Countries (LICs): A systematic literature review. University of Oxford, (2013) 38 pp. [TMD Working Paper: TMD-WP-62]