 OK. Čakujem. Mi je Jacomo Zanello in sem vzela Universtvo Fox na momentu. Vzelo je inšel reserč, kaj je vzela reserč, kaj je vzela inoječnja v loših kraju. Reserč je vzela v ECRC, ko je rešerč kansilo v Unijskih in DFID, ko je Departementu Internečnoj vsega občaske reserča izgleda, kaj inoječnja v loših kraju vsega inoječnja vsega inoječnja v loših kraju. Vsega inoječnja vsega inoječnja vsega inoječnja vsega inoječnja vsega inoječnja v ECRC. To je pravde, da vsega nije pricete. Ne z krijgenom evoječnja inoječnja v loših kraju wenječne inoječnja vsega inoječnja neINGING inoječnja vsega inoječnja vsega reserča z kvalitativnjim lagiškem in zelo skupnja v zelo. Vseh zelo skupnja in težko sajšelimo v nekinjem nekaj firme in bovamo izgovoriti, da imamo nekaj inovativ, da se zelo. Priješudim v površtlu odličnost. Vedno, že inovizija je veliko kreativna za gradi ekonomiji. Nel sond prej ne obožojene, prišli vedno s tem, ki je so časnje, ki je v tem, posledno oboželja after the second industrial revolution, or Japan after the Second World War, which was able to catch up with leading in the technological, in the market and pushing the technological frontier. However, we also saw that most of the innovation are concentrated in a few countries. What usually we capture for innovation is patents. We see the patents that are registered in different countries and we see, OK, those countries are innovative. And we see the latest data a couple of years ago, most of the patents are registered in North America and Asia. Asia is mainly China and Europe. And if we see low-income countries, like might be Africa or Latin America, we find very little, very little evidence of this. Therefore, the diffusion of knowledge from technological advanced countries to low-income countries might rely on enough human and financial resources in hosting countries, but also capability and capacity in firms and industries to make sense of new technology. I think patents is very good when we are talking about industrialized countries. However, we might give a more broader definition of what innovation is. And in the past ten years, there was a debate of how really we can capture innovation. Is the patent good enough or not? And from there, there are a new definition of what innovation is, which I'm going to read from the Oslo manual, which is from OSCD, adoption of new product or process or new organizational and marketing practices, where new means new to the world or new to the country or to the firm. And we added a contribution from Schumpeter, new business model and new sources of supply. If we see innovation from this different perspective, I think we could highlight two important differences within the definition itself. The first is that innovation is a very broad meaning, which span a different field. We see new product or process and the new organizational and marketing practices. And also what is very important is that when we talk about new, not new to the world, but it might be also new to the country or new to the firm itself. And the impact that this innovation has on the firm is important in itself. So this will be really our definition for innovation, which we will keep throughout the study. Then what really we want to see? We want to see which kind of innovation is found in low-income countries and how innovation is diffused to and spread within low-income countries. Some innovation might born in the country, but most of the time we found innovation that is from outside a country or from a firm within the country. More specifically, we focus on Ghana. Why Ghana? Ghana, because it got institution and educational level, which might be as fertile soil for innovation. And we have three different questions, which I will try briefly to address. The first one is, which is the current state of innovation in Ghana firms? Are they innovative? In which kind of field they are innovating? And which are the motivation of innovation? The second is, which are the channel of innovation diffusion within the country itself, but also from outside Ghana, which we saw that are very important channel of innovation. When I'm talking outside Ghana, it's not necessary from, for example, Europe or North America, but also South-South collaboration. There are new evidence, there is new evidence that South-South collaboration might be more effective because the needs are similar for host country. And finally, we look at the firm perception that current innovation policies in Ghana. Ghana addresses an industrial policies in 2010, in which innovation got a large part of it. So we were interested to have a kind of perception from workers and managers on how effective policies are. Very quickly, just a few points on a few evidence from the literature. The first is that innovation studies in low-income countries is a very new field of research. Innovation studies have quite a long history in developed countries from Europe to North America. But if we look at low-income countries, we find very little evidence. The second point I want to make, innovation in low-income countries needs to face a lot of constraints, typically of low-income countries. Most specifically, the industrial sector is much less diversified. Often it is mainly agriculture and extractive industry. The level of specialization is lower as well compared to industrialized countries. Something important and something which we focus our attention is on the informal sector. Half of the establishment in Ghana are informal, meaning they have a very different way of running business compared to formal establishment, and I will come back on this later. And finally, the large share of FDI, which of course is important in the context of innovation. The last point I would like to make in terms of evidence from the literature is the recognition of people living at the base of the pyramid as innovator and new potential customer. People under the poverty line in the past decade have been recognized not only as a potential innovator, but not as a potential customer, but also as an innovator. Often they are ingenuity, and they can face strong constraints in the environment in which they live. And this is something that we try to look at. Very quickly before going to the result, what we have done, this is very much some preliminary result which helps us to contextualize the word of innovation in Ghana. We use a qualitative approach, a case study, and we sample firms that we knew that were innovative. In Ghana, two years ago, NEPAD ran an innovation survey, so we could have access to the data, and we could pick the innovator firms. Simply because really our purpose is to look at what drives innovation, in this specific, what I'm going to present today. We selected three industries, textile, which is very important and very labor intensive in a country like Ghana. Food sector, because it's very connected with the agricultural world. And finally the firms working in the construction business. Like many African capital, there is a growing construction business, in the construction industry in Ghana. And what the rational of choosing firms working in the construction business is because we were interested to see if working with foreign firms, which are mainly firms that are working at the moment in the construction industry in Ghana. For example, Chinese firms can have some spillover to local firms. We choose two sector. We don't focus only on the formal sector, but also on the informal sector. Just to give an example of formal and informal sector, in which kind of the difference are. On the top we see some textile, two textile firms. The one on the left is formal. We see that the labor is very organized, and on the right we see an informal sector. Informal sector of workers are paid if they work. Sometime electricity power is not there, so they don't go to work and they don't get paid. And on the bottom we find food processing sector. We see that the technology is very much different. And really what we try to do is to try to compare different sector, but also compare difference between formal and informal sector. The overall idea really is to have a better understanding of innovation as an overall in the private sector. We sample ten firms for textile and food sector two of each were formal and informal and two for the construction business. And we run 32 in-depth interviews. We interview managers and we interview also workers. We wanted to understand whether workers are a source of innovation. There is quite a lot of literature in innovation studies looking at firms in Europe and in the US in which they highlight how some of the innovation come from workers. And we were interested to see whether this was something that we could find in a low-income country setting. I'm gonna go directly to the result. The first, we are looking at the nature of innovation and as I mentioned on my first slide, we did find innovation activities in a broad sense, which they span from production process to new product. But also we found new innovation in management and marketing practices. Most of the innovation we found were incremental. However, we found a few examples of innovation which are believed to be new to the world. A very informal sector, informal food processing firm with a few employees started doing local sauce instead of using pepper, they put mushroom. And actually, no one has done it before. So we find new evidence of a product that really no one has done it before. A construction firm business is doing a device which was used to be done in wood, in plastic. And these as well, they are not aware of anyone else doing something similar. And one point about innovation, the nature of innovation, which I think is important to highlight, is that we find innovation in different industry and in different sector. It's not specific neither by industry sector. Often, however, we have the evidence that innovation is driven by the people more than by institution. So really people with managers, most of the time, with characteristics that they make them to overcome, constrain, which are typical of low income countries, constrain in term of access to labor and access to financial support. Quickly, I will go through which kind of product innovation we found and which kind of process manager and organizational innovation. The first is why firms decide to innovate first. We find a very range of motivation why firms decide to innovate. The most obvious is to increase market opportunities. I decide to produce something new so I can enter a new market which I might think I can have some space. Some, they want to maximize the profit, meaning they decide to include new product where the margin is higher. Others decide to optimize the production. For example, food processing firm, which was used to do palm soup, decided to get into the peanuts sector because when palm is not in season, peanuts is in season, so they can keep production throughout the year. Others, they want to reduce waste. We spent some time with a very small, informal food processing mushroom grower and she was used to sell fresh mushrooms to the market. Of course, mushrooms are very perishable food, so she was able to have a dryer for mushrooms and now she has a dry mushroom as well. Reducing waste is a motivation for innovation. Also, we find some examples of innovation from demand side. In a construction firm, they receive a large order from a African foreign government to produce a specific kind of pipe and they were able to get into the market. Then we found that most of the firms introduced new machinery to increase efficiency and quality. In term of non-technological innovation in marketing and management practice, in marketing we find innovation from new packaging. They always try to have packaging that stand up in the shelf. They communicate with customers. For example, a very small, informal food processing firm start putting up mobile phone number in the label and people are calling them if they like it or they don't like the product. Also, they try to add services to the product. For example, a textile, a small, formal textile firm which is working in the security clothes for security is used to teach the new customer how to take measurement, so they are sure that the measurement they get are correct. In term of management practice, we found different firms that are doing cross training. They train labor to work in different parts of the process chain. In a way that if one worker is not able to come to work, they can replace inefficient way. Just very quickly going through the diffusion of innovation, how firms get to know new things, how they can innovate. First I will talk about diffusion of innovation within Ghana and we find that most of the informal firms they get to innovate through training courses. We have some government training courses with teach them new technique and new technologies. We find that cluster is an important source of innovation as well. Sure? Yeah, we run out of time. Ah, okay. No, no, that's fine. Very quickly, something that we are also interested in was collaboration with local universities and we found that only in more formal establishment. Very quickly about innovation diffusion from outside Ghana, we find the internet a very large source of information for different firms we interview. Just to conclude, really some preliminary conclusion about what we have done. Yes, we found innovation in different field. However, most of them is incremental and no groundbreaking. Innovation seems to be more driven by people, people that have characteristics to overcome constraints, typical of low income countries, more than institutions. And finally, we captured some space for policy implementation which we might discuss later. Thank you very much.