Catalysing and Scaling Innovation In Tanzania

CATALYSING AND SCALING Innovation in Tanzania: A review of approaches • INTRODUCTION
The routes to economic
and development impact
We could say that, ideally, innovation support aims to
help create innovations that have both a significant
development impact and a significant economic
impact. When new innovations are created, their
impact in either respect is usually small or incremental.
The model described in the Figure 3 illustrates that
when an innovation scales, it typically takes one of
two routes. For example, an innovation could first
scale commercially, targeting higher value markets
and, only after reaching significant volume, expand
the service to reach lower-income markets where
the development impact will be increased.
Figure 3 The routes to economic and development impact
Big
Economic impact
Small
“Scaleable
innovation”
“Incremental
innovation”
Small
Development impact
“Scaleable and
transformative
innovation”
“Transformative
innovation”
Big
An alternative route to scale is through large-scale
implementation supported by public funding to
prove feasibility and development impact, using
that experience to attract other funders, scale to
multiple markets, and to develop a sustainable
business model.
The support needs of different innovations within
the ecosystem vary hugely. A good deal of thought
needs to be given as to how different sets of financial
instruments and support can be applied to make all
types of innovation both thrive and be sustainable.
In recent years, more funders have realised the
potential of innovation for development, and there is
increasing support and investment at various stages
of the ‘innovation pipeline’ in Tanzania and East
Africa as a whole. Different types of investment are
required depending on the nature of the innovation,
but frequently the right type of investment is not
available. Furthermore, with increasing investment
comes a need for greater collaboration, shared
value ii , knowledge sharing, and analysis.
Meanwhile, policymakers are increassingly
looking more seriously at the role that innovation
and technology can play in contributing to
industrialisation and job creation. To make long-term
systemic change it is important to first understand
the impact, success, and risks associated with
different approaches – who are the stakeholders that
are involved in supporting innovation, who is funding
what, and where, along the innovation pipeline – to
know where the gaps exist.
In this report, we specifically look at the complex
support needs of social innovation, as well as
how best to foster the supportive environment
needed in order for all types of social innovation
to reach their full potential and scale or diffuse. iii
By sharing our experiences and learning, we hope
to bring understanding on how best to improve the
support that innovators in Tanzania can, and should,
expect to receive.
We encourage readers to take note of the insights
gathered, and work together to develop a shared
vision for innovation in Tanzania.
Below
Community
members
accessing water
at a prepaid
water kiosk in
Maganzo town in
Kishapu District,
part of an ICS
project.
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KUMI MEDIA