The informal economy represents a significant share of output and employment in many developing countries. Yet little is known about this hidden engine of innovation. This pioneering study addresses some crucial questions, including: what is the role of the informal sector in economic development? How does innovation occur in the informal economy? How does it spread, who are the key actors and what impacts does it have? How do inventors and entrepreneurs in the informal economy reap benefits from their innovations? What stops informal sector innovation from scaling up? How can informal sector innovation in developing countries be measured? And what policies might support informal sector innovation and improve its impacts? This book will stimulate further work on this crucial but under-researched subject. As well as rich empirical evidence from several groundbreaking studies, it includes conceptual and methodological tools and policy recommendations to help researchers and policy-makers understand innovation in the informal economy.
1. The informal economy: definitions, size, contribution and main characteristics Jacques Charmes
Comment 1.1 Adriana Mata Greenwood
Comment 1.2 Johannes Jütting
2. Innovation in the informal economy Jeremy de Beer, Kun Fu and Sacha Wunsch-Vincent
Comment 2.1 Colin C. Williams
Comment 2.2 Fred Gault
Comment 2.3 Xiaolan Fu
3. A study of the informal metalworking sector in Nairobi Christopher Bull, Steve Daniels, Mary Kinyanjui and Barrett Hazeltine
Comment 3.1 Joseph K. Kiplagat
4. Informal manufacturing of home and personal care products in South Africa Erika Kraemer-Mbula
Comment 4.1 Nonhlanhla Mkhize
5. Herbal medicine in the informal sector of Ghana George Owusu Essegbey and Stephen Awuni
Comment 5.1 Peter Arhin
6. Appropriation and intellectual property in the informal economy Jeremy de Beer and Sacha Wunsch-Vincent
Comment 6.1 Emmanuel Sackey
Comment 6.2 Dick Kawooya
Comment 6.3 Shamnad Basheer
7. Innovation policy and the informal economy: toward a new policy framework Erika Kraemer-Mbula and Almamy Konte
Comment 7.1 Anneline Morgan
Comment 7.2 Judith Sutz
8. Formulating an agenda for the measurement of innovation in the informal economy Jacques Charmes, Fred Gault and Sacha Wunsch-Vincent
Comment 8.1 Philippe Mawoko
Annex 1. Ad hoc interview guidelines and questionnaires
Annex 2. Extract 1 from the generic questionnaire of stage 2 of the 1-2-3 survey
Annex 3. Kenya 2014.
