The creation and diffusion of innovation in developing countries: a systematic literature review

In this study, we review the literature on the creation and diffusion of innovation in theprivate sectors (industry and services) in developing countries. In particular, we collect evidence onwhat are the barriers to innovation creation and diffusion and the channels of innovation diffusion toand within developing countries. We find that innovation in developing countries is about creation oradoption of new ideas and technologies; but the capacity for innovation is embedded in and constitutedby dynamics between geographical, socio-economic, political and legal subsystems. We contextualizethe findings from the review in the current theoretical framework of diffusion of innovations, and weemphasize how the institutional context typical of developing countries impacts the diffusion itself