COMPREHENSIVE INNOVATION MYTHS AND REALITIES
A series of essays by scholars of the African Network for Learning, Innovation and Competence Building Systems (Africalics) and the South African Research Chair in Industrial Development (SARChI-ID) examines ways forward By Rasmus Lema, Professor, University of Johannesburg REFRAMING THE “INNOVATION TURN” IN DEVELOPMENT STRATEGY
I nnovation has returned to the center of development thinking. Faced with climate pressures, energy transitions and rapid digital change, policymakers are placing their bets on technology. From solar photovoltaics to artificial intelligence, innovation is presented as the engine that can deliver growth, sustainability and competitiveness all at once. The message is appealing: Invest in new technologies and development will follow. This narrative, however, oversimplifies how development actually happens. Innovation can certainly support progress. It can raise productivity, open new industries and help economies move toward low-carbon pathways. For countries in need of latecomer development, technological shifts can create new opportunities. Yet the leap from innovation to development is not automatic. Too often, policy debates blur the distinction between technological change and structural transformation. Development is not just about new ideas or new technologies. It is about shifting resources into more productive activities and, crucially, about building capabilities within firms, workers and institutions. Innovation only contributes when it is firmly embedded in these
processes. Without that, it remains isolated. New technologies may be adopted, but cannot alone transform the economy. This matters because much of today’s innovation agenda focuses on visible outputs, with a strong emphasis on entrepreneurship, SME startups and innovation hubs. These are easy to measure and politically attractive. But they say little about whether firms are learning, whether industries are upgrading or whether economies are becoming more productive. The risk is a form of “tech solutionism”, where technology is treated as a shortcut to development. What innovation really looks like On the ground, especially in developing countries, innovation rarely takes the form of frontier breakthroughs or vanguard technologies. It is more often incremental, practical and adaptive. Firms adjust production processes, combine existing technologies in new ways and find solutions that fit local constraints. This is where most learning actually happens. These forms of innovation tend to be undervalued. Policy agendas often favor high-tech sectors and advanced
Rasmus Lema
Rasmus Lema is a Professor at the University of Johannesburg and South African Research Chair in Industrial Development. He is also a Professorial Fellow at UNU-MERIT and Editor-in-Chief of Innovation and Development. He holds a DPhil in Development Studies from the Institute of Development Studies (IDS), University of Sussex, UK. His research focuses on industrial development, innovation and sustainability, with particular attention to green and digital transformations in the Global South.
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