Low-technology innovations within sectoral system: reflections and manifestations

R&D is considered the key determinant of innovation in any industrial sector. Evolution in innovation thought since Schumpeter’s pioneering work during the 1930s and 40s has led us to shed this myopic view and recognize the influence of other factors. We contend that innovation, essentially non-linear in nature, can be observed in developing countries like Pakistan characterized by low-technology sectors that have zero or very low R&D intensity. However, this form of innovation has its own peculiar set of determinants that are context-driven. An emerging research focus on LT innovation is highlighted based on review of empirical work carried out since 1999. However, a dearth of in-depth studies that apply a theoretical approach such as systems of innovation concept and cover industrial sectors in developing countries is revealed. A sectoral-system-oriented explanation of LT innovations in marble sector of north-west Pakistan is presented by applying the micro-meso-macro analytical framework. Answers to some of the questions in terms of nature and types of LT innovations within sectoral systems’ dimensions including elements, structure and activities/determinants are provided.