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 have scare resources. They are also referred to as less developed economies or underdeveloped countries. They are characterized by a low human development index (HDI) as compared to other countries. Due to these reasons, innovation becomes a matter of challenge for them. Innovative culture is emerging slowly among these economies. This is because of the change in the business environmental factors. The initiation of innovative environment has positive effect on the overall business environment. Thus, in order to survive in the competitive environment, developing economies need to shift focus from traditional practices to the innovative practices. They also need to develop new partnerships and new structures with the changing business paradigm. For example, only one-quarter of Africans have a bank account, but 70% have a mobile phone. Also, due to increase in the consumption pattern, there is increase in the demand for the local products. This has resulted in increase in economic opportunity. Many developing countries are taking advantage of this opportunity. There is a need to explore management techniques adopted by SMEs in the developing economies. SMEs face different barriers like shortage of technical training, shortage of financial resources, etc. This chapter is an attempt to provide answers to such issues.