This paper reviews options for measuring innovation in the informal sector and proposes an agenda for future work. It starts with a review of surveys of innovation in the formal business sector, and related definitions, as sources of questions and definitions which could be applied to the informal sector. Then, labour force surveys, and those that are combined with establishment surveys to measure informal sector activities, are examined with a view to adding questions, or modules, on the measurement of innovation in the informal sector. In addition, the advantages of using semi-structured interviews and ad hoc questionnaires in specific sub-sectors of the informal sector are explored. The discussion leads to a possible agenda for future work on the development of policy relevant indicators of innovation in the informal economy. Its main strength lies in the new combination of tested approaches in both informal sector and also innovation surveys.