The MicroConsignment Model Reconsidered: Invention-Led Development by Shifting Risk, Transferring Knowledge, and Scaling Capabilities (Innovations Case Discussion: The MicroConsignment Model)

Abstract

an emerging definition: “Innovative and effective activities that focus strategically on resolving social market failures and creating opportunities to add social value systematically by using a range of organizational formats to maximize social impact and bring about change.” This definition acknowledges three key aspects of social entrepreneurship: an innovative element, a primary focus on the creation of social value, and a diverse set of approaches that employ creativity to deliver social value. Thus it paves the way for a greater understanding of “invention-led development,” which, according to the Lemelson Foundation, focuses on how new ideas, products, or services can be converted to widely accessible or adopted forms in the creation of social value. When the language of invention-led development is used, it conjures up images of novel products and services used in development activities. On the product side, for example, a treadle pump—such as those designed by KickStart— offers significant advantages over other alternatives in improving irrigation for subsistence farmers in Africa. Similarly, on the service side, the creation of microfinance by organizations such as Grameen Bank makes credit available to populations that previously had been denied such access.