1. 1 Innovation and Entrepreneurship in Developing Countries: Impact Assessment and Lessons Learned from InfoDev’s Global Network of Business Incubators June 2006

2. 2 Study Goals: Promoting Entrepreneurship and Innovation? –Describe and assess the effectiveness of the infoDev initiative –Draw out challenges and lessons learned for infoDev, its stakeholders, and the broader community of ICT-enabled entrepreneurial and innovative organizations –Describe and derive insights on the role of business incubation relative to the enabling environment and their influence on entrepreneurship, innovation and economic growth in the developing world

3. 3 Why do Innovation and Entrepreneurship Matter? Drivers of Prosperity Innovation and entrepreneurship create prosperity by: Increasing wages by competing on human capital and knowledge Reducing unemployment Connecting local economies to the global economy Facilitating clusters and knowledge transfer Innovation: The process of creating new goods and services that provide unique value for demanding customers who are willing to pay for that value Entrepreneurship Entrepreneurship: The creation and growth of new businesses (start-ups per adult population) Innovation “Knowledge- Based” Entrepreneurs Economic Growth Time I+E increase the rate of economic growth Source: Audretsch, D.B. and R. Thurik, “Linking Entrepreneurship to Growth,” OECD Science, Technology and Industry Working Papers, 2001/2 “Invention and entrepreneurship are at the heart of national advantage” - M. Porter

4. 4 Enabling Prosperity Seven Forms of Entrepreneurial Capital CulturalHuman Knowledge InstitutionalFinancialMan-Made Natural Endowments Social Pro-innovation attitudes: trust, tolerance, comfort with risk and ambiguity, outward orientation Diversity Physical Location, proximity to markets Environmental health Connectivity, access to ICT Roads, ports, airports Electrical grids Access to capital Angel networks, banks Public and private markets Regulatory environment: IP protection, bankruptcy laws, trade laws Informal networks of entrepreneurs Universities, R+D Institutes Think tanks, private sector research Records, theories, processes Levels of education and training Management and leadership skills Entrepreneurial experience Business Incubation Business Development Services Technology Parks Universities Associations ….. Mechanisms to Address Capital Gaps in Developing Economies: Addressing gaps in entrepreneurial capital for knowledge-based entrepreneurs Entrepreneurship Innovation

5. 5 InfoDev Network of Business Incubators: Early Lessons  Networking  Finance Gaps  Integration  Enabling  People  Models and Concepts  Sustainability

6. 6 Monitoring, Evaluation and Impact Assessment (MEIA) Framework for Assessment Input Impact Outcome Output Activity infoDev Program Objectives infoDev Enabling Environment Grantee Founders & Stakeholders Grantee Organizations Grantee Clients Relevance – Does the program help grantees to address factors that influence innovation and entrepreneurship? Effectiveness – Has the program facilitated results in terms of outputs, outcomes and impacts? Efficiency – Were outputs, outcomes and impacts reasonable relative to the inputs that were required to achieve them? Sustainability – What is the likelihood that outcomes and impacts will continue to be achieved? Is this dependent on continued grant revenue? Performance – What are lessons learned in terms of how best to achieve outcomes and impacts? Relative to... Collect & Analyze Data & Information... In order to assess... Study Objectives