Inclusive Innovation in Developed Countries: The Who, What, Why, and How

Although widely appreciated as an important driver of economic growth, innovation has also been established as a contributor to increasing economic and social inequalities. Such negative consequences are particularly obvious in the context of developing countries and extreme poverty, where innovation's contributions to inequalities are considered an issue of social and economic exclusion. In response, the concept of inclusive innovation has been developed to provide frameworks and action guidelines to measure and reduce the inequality-increasing effects of innovation. In developing countries, attention has only recently turned to the role of innovation in increasing inequalities, for example in the context of the degradation of employment in the transition from production to service industries. Although the focus of this early work is primarily on economic growth, innovation in developed countries also contributes to social exclusion, both of groups traditionally subject to social exclusion and new groups marginalized through arising innovations. This article summarizes the origins of the concept of inclusive innovation and proposes a four-dimensional framework for inclusive innovation in developed countries. Specifically, innovation needs to be inclusive in terms of people, activities, outcomes, and governance: i) individuals and groups participating in the innovation process at all levels; ii) the types of innovation activities considered; iii) the consideration of all positive and negative outcomes of innovation (including economic, social, and environmental); and iv) the governance of innovation systems. This framework is intended to guide policy development for inclusive innovation, as well as to encourage academics to investigate all dimensions of inclusive innovation in developed countries.