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Pro-Poor, Entrepreneur-Based Innovation and it’s Role in Rural Development

Author

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  • Sonne, Lina

    () (UNU-MERIT)

Abstract

Innovation spurs economic growth and development. Pro-poor innovation in rural areas is more likely to occur through small-scale ventures and entrepreneurs than industrial research and development. Whilst previous rural development policies have focussed on small-holder agriculture, the fact is that most rural poor are landless poor and therefore unlikely to benefit greatly from agriculture-based policies. Instead most poor are entrepreneurs, running micro ventures, often at subsistence levels in both agriculture related and non-farm sectors. Though most rural poor are entrepreneurs out of necessity, a few are opportunity entrepreneurs pursuing a profitable business, innovating and looking to grow. These are the growth focussed entrepreneurs that are likely to have a large indirect effect on the poor by providing employment opportunities as well as improved good and service. This paper discusses the concept of propoor entrepreneur-based innovation (PEBI) by reviewing existing literature on rural development, innovation and entrepreneurship.

Suggested Citation

  • Sonne, Lina, 2010. "Pro-Poor, Entrepreneur-Based Innovation and it’s Role in Rural Development," MERIT Working Papers 037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2010037
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    File URL: https://www.merit.unu.edu/publications/wppdf/2010/wp2010-037.pdf
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    Keywords

    Pro-poor innovation; entrepreneurship; rural development;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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