A NEW PERSPECTIVE ON INNOVATION FOR DEVELOPMENT.

The success of human societies in promoting innovation for technological progress is widely celebrated, but the microfoundations of innovation are seldom analyzed. Understanding these microfoundations is vital for designing effective national and local programs and policies for innovation. Although many frameworks have been proposed to study innovation, few have gained widespread acceptance across industries, sectors, and regions (Naqshbandi & Singh, 2015). The diversity of theories is not the issue; it can be useful. However, a lack of deep understanding of innovation at a fundamental level makes it hard to prioritize and guide initiatives. This policy brief aims to share research on the microfoundations of innovation and introduce a framework based on economic capacities that governmental and non-governmental institutions can use for development initiatives.