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Pro-Poor, Entrepreneur-Based Innovation and it’s Role in Rural Development

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  • Sonne, Lina

    (UNU-MERIT)

Abstract

Innovation spurs economic growth and development. Pro-poor innovation in rural areas is more likely to occur through small-scale ventures and entrepreneurs than industrial research and development. Whilst previous rural development policies have focussed on small-holder agriculture, the fact is that most rural poor are landless poor and therefore unlikely to benefit greatly from agriculture-based policies. Instead most poor are entrepreneurs, running micro ventures, often at subsistence levels in both agriculture related and non-farm sectors. Though most rural poor are entrepreneurs out of necessity, a few are opportunity entrepreneurs pursuing a profitable business, innovating and looking to grow. These are the growth focussed entrepreneurs that are likely to have a large indirect effect on the poor by providing employment opportunities as well as improved good and service. This paper discusses the concept of propoor entrepreneur-based innovation (PEBI) by reviewing existing literature on rural development, innovation and entrepreneurship.

Suggested Citation

  • Sonne, Lina, 2010. "Pro-Poor, Entrepreneur-Based Innovation and it’s Role in Rural Development," MERIT Working Papers 2010-037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2010037
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    References listed on IDEAS

    as
    1. Francisco Sagasti, 2004. "Knowledge and Innovation for Development," Books, Edward Elgar Publishing, number 3306.
    2. Wim Naudé, 2008. "Entrepreneurship in Economic Development," WIDER Working Paper Series RP2008-20, World Institute for Development Economic Research (UNU-WIDER).
    3. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    4. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Pro-poor innovation; entrepreneurship; rural development;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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