Innovations, informality, and the global south: A thematic analysis of past research and future directions

Abstract

The informal sector of the global south has lately started to gain attention from innovation and development studies scholars. Studies highlighting the determinants, barriers, social processes, and institutions that influence innovations in the informal sector have enriched the discussion on the topic. This paper analyzes the existing body of knowledge at the intersection of the informal sector, innovations, and the global south. Seventy-seven academic articles from the Scopus and Web of Sciences databases have been thematically reviewed, and seven themes have been identified: 1) innovation potential of the informal sector, 2) knowledge and learning in the informal sector innovations, 3) technology adoption in the informal sector, 4) interaction and collaborations with formal sector entities, 5) innovation dynamics in the informal enterprises, 6) individual innovators in the informal settings, and 7) gender, innovation, and informality. To the best of our knowledge, this study is the first attempt to synthesize the literature on informal sector innovations in the global south. Hence, the paper is a crucial contribution to the innovation studies literature. Finally, we provide future directions to guide further studies in this area.