Innovation and Development: A Framework “Unmasking” The Role of Institutional Development

Abstract

In contemporary times, one hardly finds progress without the element of innovation. Individuals such as Bill Gates, Warren Buffet, and Mark Zuckerberg just to mention a few are a subject of extolment because they distinguished themselves from the norms of society by adding value to what is already there or inventing an entirely new product. This presupposes that development and innovation are inseparable.The purpose of this paper is to provide a framework on the ostensible relationship between innovation and national development taking into account the role of institutional quality. The paper explores the ingredients for a smooth takeoff of innovation drive through science and technology in developing economies. The paper is in attempt to address challenges faced by developing economies such as the ones in sub-Sahara Africa. A rigorous literature-based analysis was employed by considering concepts from innovation and development. A synthesis of the various concepts and constructs leads to the development of a three-pronged conceptual framework.The findings indicate that it takes the effort of a well-developed institutional framework to evolve innovation and have it applied for the benefit of society. The paper in its essence emphasizes that institutions are the facilitators of the innovation drive and that it takes an efficient and vibrant institutional setup to actualized this benefit.  The framework will enrich the discourse on innovation and development by contributing to theory, research and practice in the science, technology and innovation (STI) agenda. The paper concludes by pointing out that, the environment plays an important role for institutions to function. The pro-activeness of institutions is contingent on the environment necessary for them to thrive. That is, public funding of innovation drive cannot be decouple from institutional framework and that is what developing economies must realize and embrace to bring about the structural change so desired.

Keywords: Innovation; Institutional Quality, Science, Technology and Innovation (STI), Development; Entrepreneurship; Developing Economies.