Measuring innovation in the informal economy – formulating an agenda for Africa
| DOI | https://doi.org/10.1108/JIC-11-2016-0126 |
| Pages | 536-549 |
| Date | 14 May 2018 |
| Published date | 14 May 2018 |
| Author | Jacques Charmes,Fred Gault,Sacha Wunsch-Vincent |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & Finance,Accounting/accountancy,Behavioural accounting |
Measuring innovation in the
informal economy –formulating
an agenda for Africa
Jacques Charmes
Scientific Research Institute for Development (IRD), Paris, France
Fred Gault
UNU-MERIT, Maastricht, The Netherlands, and
Sacha Wunsch-Vincent
World IP Organization, UN, Geneva, Switzerland
Abstract
Purpose –The purpose of this paper is to review options for measuring innovation in the informal sector and
proposes an agenda for future work.
Design/methodology/approach –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, labor 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.
Findings –The discussion leads to a possible agenda for future work on the development of policy relevant
indicators of innovation in the informal economy. Two viable scenarios emerge: first, adding innovation
questions to existing large-scale surveys of the informal economy; and/or second, conducting ad hoc
questionnaire- and interview-based sectoral studies in selected countries.
Research limitations/implications –The proposed course of actions suffers from a few shortcomings:
first, amending existing surveys as proposed here is always a challenging undertaking. A new survey
questions have to be tested (cognitive and other testing); their deployment also depends on the willingness of
countries to include new questions. Second, surveying the informal economy and applying proper sampling
will remain an issue, no matter how good the survey design, and not matter how sincere the effort. Third, and
finally, conducting these new survey techniques will require substantial resources over time.
Practical implications –In the coming years, new efforts are planned to gather data and bettermeasure
innovationin developing countries, suchas the third edition of the African InnovationOutlook. This will widen
the scopeof reporting and analysis to includecoverage of innovationsin the informal sector (AU-NEPAD2014).
The suggestions in thischapter are intended to lay important groundwork for future empirical work,to help
develop appropriate indicators and support new approaches to innovation policy in developing countries.
Pragmatic suggestions are formulated,pointing to potential opportunitiesand challenges.
Social implications –The informal economy is a hugely important contributor to economic growth and
social well-being in Africa and other developing countries. Better measurement and contributing to a better
understanding of innovation in the informal economy will be important progress.
Originality/value –The contribution of the paper lies in the novel combination of tested approaches in
informal sector surveys, on the one hand, and innovation surveys in the formal sector, on the other hand. The
approaches provide ways forward to gain better understanding of the innovation in the informal economy,
and to support innovation policy in African countries and beyond.
Keywords Africa, Innovation,Intangible assets, Informal economy, Intellectual property, Innovation metrics
Paper type Research paper
1. Introduction
Innovation happens everywhere, in the formal and the informal sector[1], in private or public
institutions, and in households and communities.
Innovation indicators support the monitoring and evaluation of innovation policies.
For the formal sector, several tools and surveys have guided the measurement of innovation
for the last 25 years. However, despite of the vast importance of the informal economy in
Journal of Intellectual Capital
Vol. 19 No. 3, 2018
pp. 536-549
© Emerald PublishingLimited
1469-1930
DOI 10.1108/JIC-11-2016-0126
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1469-1930.htm
536
JIC
19,3
To continue reading
Request your trial