The Diffusion of Innovation in Low-Income Countries (DILIC) end of project high-level conference was held at the Overseas Development Institute (ODI) on Monday, 2nd November.

This event, co-hosted by the TMCD and the DFID-ESRC Growth Research Programme (DEGRP), aimed to present the latest research findings of a three-year research project on Diffusion of Innovation in Low-Income Countries (DILIC), which was funded by ESRC-DFID and supported by UNCTAD, UNIDO and the Ghanaian government. The DILIC project fills in the knowledge gap by exploring determinants and transmission channels for effective innovation creation, diffusion and adoption in LICs under institutional, resource and affordability constraints.

Panel session

The conference brought together over 80 participants from across research institutions, universities, international organisations, and the private sector, and invited a group of world-renowned experts in the field of innovation in low-income countries to share state of the art knowledge and insights.

A full house throughout the conference

Mr LI Yong (Director General of UNIDO) and Prof Bengt-Åke Lundvall (Aalborg) delivered keynote speeches. Mr LI stressed the role of international cooperation in fostering innovation for inclusive and sustainable industrial development, while Prof Lundvall addressed the impact of innovation on structural change in Africa.

Mr Li Yong and Prof Lundvall giving keynote speeches

Prof Xiaolan Fu, the Director of TMCD and the Principle Investigator of the DILIC project, elaborated main findings of the three years research. She summarized 10 things to know about innovation in Low-Income Countries (LICs).

1. Innovation takes place everywhere, in both formal & informal sectors, based on adoption & adaptation.
2. Knowledge external to the firm is a major source of innovation in LICs; much derives in the country, also from foreign countries.
3. Firms in LICs use open innovation to overcome the various constraints.
4. Innovation crucially depends on participation in value chains and the formation of regional production networks. South-South trade generates significant positive productivity gains.
5. LICs generally lack adequate interaction between private firms and higher education institutions.
6. Internet serves as an effective source of innovative ideas.
7. There is a significant gender difference in innovation. Firms run by women entrepreneurs are less likely to introduce technological and novel innovation, but more likely to adopt marketing innovation.
8. Education is crucial for innovation, especially for women CEO.
9. Knowledge transfer from MNEs to local firms is not as strong as expected. This effect of Chinese MNEs is uneven.
10. Innovation is often constrained & unsupported, whilst innovation support systems are often inadequate or unknown to firms.

To read through the full version of the 10 points, please click here.

Other distinguished speakers include Dr George Essegbey (Ghana), Prof Raphael Kaplinsky (SPRU), Ms. Anne Miroux (UNCTAD), Prof Pierre Mohnen (UNU-MERIT), Dr Dirk Willem te Velde (ODI), and Mr Sacha Wunsch Vincent (WIPO).

For the full event details, downloadable programmes, presentations slides and videos of the event, please click here.