Socio-economic environment and motivation to innovate: exploring grassroots innovations process in India.

Innovations in the formal sector are by and large motivated by extrinsic rewards. However, such motives are not explored much in the informal sector innovations. Using effectance motivation theories, some previous research on grassroot innovators in India has found that much of these innovations are initially driven by 'intrinsic motivations', while the motivations shift to extrinsic factors during the innovation process. Thus, the primary objective of the paper is to understand the nature and determinants of grassroot innovators' motivations and their shifts, using econometric modelling. This research is exploratory in nature and based on primary data. It first identifies a set of socio-economic, demographic and psychological factors, which drive grassroot innovations in India. Furthermore, it explores how these factors explain the shifts in motivations from 'intrinsic' to 'extrinsic' in the course of the innovation process. The empirical results show that the socio-economic factors of innovators affect the grassroots innovation process significantly. Their effect on motivation varies at different stages of innovation. To the extent, roughly speaking, 'intrinsic' and 'extrinsic' motivations draw parallel with 'pro-social' and 'pro-market' motivations, respectively. These results may contribute to the growing body of policy research on the informal sector innovations. [ABSTRACT FROM AUTHOR]