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Innovation is increasingly recognized as a potent policy tool for addressing the structural problems that characterize poverty in marginalized rural communities. In what ways should governments in developing countries be involved in supporting innovation to achieve inclusive development objectives? This special issue brings together key insights from different facets of rural transformation programmes in the global South, with the view to shed light on the nature and outcomes of state involvement. The contributions to this volume highlight three domains in which the state plays a pivotal role in spurring inclusive rural transformation: promoting agricultural innovation in Algeria and Vietnam, supporting rural capacity building in South Africa and Peru, and the provision of pro-poor innovations for rural social development in India and Argentina. In all three domains, government support coupled with greater participation of local community members in the planning and implementation of innovative projects proved to produce greater potential for success. The contributions also emphasize the pivotal role that the state must play in supporting local capability building and bridging knowledge gaps between innovation producers and rural user communities, in order to facilitate local absorption of external technological solutions. [ABSTRACT FROM AUTHOR]

South Africa's National Development Plan entrenches the importance of a capable developmental state for the country's social and economic development. Likewise, the potential of science, technology and innovation to address development challenges is emphasised. The developmental state and inclusive innovation ideas have been in and out of the policy agenda since 1996 but have recently gained renewed policy attention. As part of an inclusive innovation for development agenda, the Department of Science and Technology facilitated the demonstration of a suite of basic service innovations in 'distressed' municipalities. This paper, using a mixed-methods approach, draws on the assessment of these demonstrations to reflect on key features which come to the fore in both the developmental state and inclusive innovation literature as crucial for success. In order to enjoy a measure of success in terms of developmental states and inclusive innovation for development, similar conditions are necessary: the encouragement and fostering of active participation by all stakeholders; sufficient financial resources and human capabilities at all levels; and strong collaborative and cohesive networks with similar purposes in mind. Once these form part of practice we are likely to see better implementation of inclusive innovation for development. [ABSTRACT FROM AUTHOR]

Creative industries are increasingly attracting the interest of academics and policymakers around the world. Policy enthusiasm is also directed in many countries towards developing knowledge-intensive or high-technology sectors. The new media sector is considered an innovative growth sector which holds potential for emerging countries. This case study examines innovation in new media firms situated in Cape Town. Theoretically, creative industries are linked to post-industrial and knowledge-based economies and the growth of services, and innovation in high-technology small and medium enterprises is also considered. This paper provides micro data regarding the innovation activities of new media firms based on purposive interviews. The study found that these firms are dynamic in terms of technological innovation. However, their innovation activities tend to be incremental and localised. Furthermore, various barriers limit their innovation enhancement and growth prospects. Public policy can support new media firms in terms of access to new business development funding and programmes supporting small enterprise innovation, improved design education and network opportunities. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between innovation activity and firm size in the South African context. Based on data from the National Innovation Survey (2002-2004) the paper looks in particular at the nature of innovation by small, medium- and micro-sized enterprises (SMMEs). The main finding is that the innovation rate of SMMEs is relatively high, with small enterprises reporting the highest innovation rate. A limited dependent variable regression, however, determines a negative statistically significant relationship between the probability to innovate and firm size. SMMEs are therefore not more innovative than large enterprises in South Africa. This paper identifies innovative entrepreneurs and micro enterprises as important foci for entrepreneurship and innovation policy. [ABSTRACT FROM AUTHOR]