Innovation and the Development Nexus: Prospects From Rural Enterprises in South Africa

Abstract

The purpose of South Africa's White Paper on Science and Technology was to set South Africa on a path away from its historically exclusive and relatively dysfunctional National System of Innovation to one more inclusive in its representation and dealings with civil society, the private sector and the marginalised -particularly the poor. Despite the links of subsequent science, technology and innovation policies and strategies to development outcomes, the RESEARCH NOTE 2 focus on the poor was notably overlooked. In the decade since the White Paper was released, the gradual and minimal 'trickle-down benefits' of innovation failed to address increasing inequality, unemployment and subsequent poverty across South Africa. Evidence from our study of four rural district municipalities, using a purposively designed snowball sampling approach, indicates that current innovation activities in these areas appear prominent in the service or tertiary economic sector. This evidence reinforces prevailing ideas that the service sector is an important area for innovation and development, while the primary sector, including agricultural activities, remains important but perhaps less than previously emphasised. The high number of public, private and non-profit enterprises innovating in the service sector delineates this sector as a crucial entry point for innovation linked development. However, several prevailing trends with regard to innovation networks and the diffusion of innovations exist as challenges across all three sectors. These obstacles need to be overcome if the innovation and development nexus is to be strengthened and lead to broader local socioeconomic development and economic growth.

Rural Entrepreneurship and Innovation in BRICS Economies: Secondary Evidence from Rural Areas in South Africa

“…The existing literature categorically asserts that innovation significantly contributes to ensuring a sustainable world, job creation, economic growth, and development. More innovative countries and regions tend to achieve higher rates of economic growth and development (see [12,18,21,22,31,32,34,35]).…”

“…Other innovation terms are closely related to rural innovation. such as social innovation, agricultural innovation, education innovation, inclusive innovation, innovation at the base of the pyramid, holistic innovation, and frugal innovation (see [12,16,25,30,[38][39][40]). This study focused on rural innovation in a general sense.…”

“…It rather manifests itself in changes in production processes, marketing strategies, and delivery arrangements (i.e., incremental innovation). In an antipode, an earlier study by Hart et al [38], which focused on social innovation in rural municipalities in South Africa, revealed that approximately 10% of the surveyed firms engaged in radical innovation. Where scholars present relatively contrary findings, future studies become imperative to clarify the differences.…”

“…Some rural firms argue that government support initiatives in rural areas have mostly benefited extended urban firms, literate, and well-established rural firms. Hart et al [38] argued that to ensure that rural innovation and entrepreneurship policies are effective, they should be formulated and implemented with the participation of rural communities.…”

Prioritizing Public Policy Implementation for Rural Development in a Developing Country via Multicriteria Classification

“…Community enabling and social cohesion (Shucksmith and Chapman 1998), which aim to develop the community and increase the links between their members (Hart et al 2014).…”