Value co-creation in regional innovation ecosystems in South Africa

Abstract

Technological innovation has been a factor in encouraging inclusive economic growth and enabling developing countries to address pressing development issues. Small, Medium, and Micro-Enterprises (SMMEs) account for around 30% of South Africa's GDP and employ more than 45% of the labour force (OECD Library, 2021). However, these technology SMMEs have faced challenges in South Africa, and their regional innovation ecosystems have needed the innovation support provided through the Department of Science and Innovation’s Regional Innovation Support Programme (RISP). The regional innovation support programme aims to use innovation as a catalyst to foster development. However, the actual contribution of regional innovation network platforms (RINPs) to value co-creation is not adequately evidenced and understood. The literature suggests that value co-creation can be realized through the innovation process's four highly collaborative phases: co-experience, co-definition, co-evolution, and co-development. To explore the question of how RINP ecosystems contribute to value co-creation, this research employed a qualitative approach. The research design methods involved content analysis and semi-structured interviews with key informants. The study found that there are nuances found in the detail of each RINP’s innovation- enabling activities, the structure of their governing bodies, and the various methods of joining the platforms. The study also found that there is limited knowledge among key actors about the national system of innovation and its role at regional level. The findings identify the necessary innovation practices and innovation capabilities to enable more effective RINPs. The study findings also suggest that the definition of “value” in RINP research differs from region to region based on assessing their innovation outputs. Ultimately, the study found that – notwithstanding the fact that South Africa has made major advancements in establishing RINPs across the country – some RINPs struggle to fully function owing to challenges such as a lack of human, financial and physical resources. The study provides practitioners and scholars with insight into how the regional innovation ecosystems can better contribute to value co- creation in South Africa.