Policy-makers in low-income countries are increasingly aiming for a different and higher-quality type of growth. This growth should be more technology intensive, with a diversified production structure, be resilient to shocks, create jobs and be more inclusive.

Crucial for this is enhancing economic transformation, defined as the movement of resources from low-productivity to high-productivity activities. However, empirical evidence on how much is already happening and how to enhance this process is often scarce or lacking altogether in low-income countries.

This report synthesises the latest and most relevant research from the DFID-ESRC Growth Research Programme (DEGRP) on innovation, putting it in context within an emerging body of evidence on economic transformation.

Linda Calabrese, Kunal Sen, Dirk Willem te Velde, Chisom Ubabukoh and Steve Wiggins