Diffusion dynamics of the informal sector sustainable innovations: Exploring cases of grassroots innovations in India

Abstract

Over the last two decades, researchers, policymakers, and practitioners have focused on the innovations in the informal sector, particularly grassroots innovations (GI) from low-income countries. Such innovations' diffusion dynamics, however, are uncharted territory. As a result, this paper explores the diffusion of GI from India's informal sector. We chose ten GI and gathered data in ex-situ and in-situ conditions using a case study method. The data is analysed on four parameters of diffusion of innovation (DOI) theory by Rogers. The findings imply that the GI provide sustainable, and a low cost perceived use value while other innovations from the formal sector are either expensive, unavailable, or do not see it as a potentially profitable enterprise. Furthermore, informality vis-à-vis communication and social structure have a significant impact on diffusion of GI. Time dimension may not be as important for the informal sector innovations. The formal sector actors are more involved in dissemination of GI, employing new means. Finally, we discuss how DOI theory may be applied in the informal sector and how it can aid in alleviating GI diffusion concerns.