Management of Innovation in Developing Economies

The objective of chapter is to understand management of innovation in developing economies. Developing economies are the countries that are characterized by underdeveloped industrial base and having less resources. They are also called as less developed economy or underdeveloped country. They are also characterized by a low Human Development Index (HDI) relative to other countries. Innovation is a matter of challenge for these economies due to low level of resources. But lately, Innovative culture is emerging rapidly in these economies. The initiation of innovative environment can have a positive effect on the people who are not even considered potential customers by many companies. In order to survive in the competitive environment in the presence of developed economies, there is a need to shift focus from traditional practices to innovative practices. They also need to develop new partnerships and new structures with the changing business environment. For example, only one-quarter of Africans have a bank account, but 70% have a mobile phones. Therefore Africa is a progressive ground for mobile-payment businesses. Also, due to increase in the consumption pattern has created more demand for local products. This has resulted in increase in economic opportunity. In the presence of such factors, it stresses on the need to explore management techniques adopted by developing economies in the presence of several barriers like less resources, shortage of financial sources etc. Such innovative practices should have a positive impact on health and overall well-being and minimize negative environmental implications. The chapter highlights some of the innovation management techniques to be adopted by developing economies