56 percent had a major or subobjective to directly increase competitiveness. In addition, 31 percent of projects intended to promote innovation or improve technology. About 80 percent of the completed projects had satisfactory outcomes, achieving the major relevant objectives, most of which related to improving innovation, productivity, or strengthening competitiveness. Project performance was slightly higher than other Bank projects evaluated during this period (77 percent success rate), but this was not statistically different (Appendix Figure E.1).2 Innovation and entrepreneurship projects were less successful in low-income countries than in lower-middle and upper-middle-income countries. Such differences suggest that the performance of interventions depends on the local context. Bank projects typically involve several components, some of which may not relate directly to innovation and entrepreneurship. Thus, aggregate measures of performance, such as project outcome ratings, may reflect the effects of other interventions. IEG therefore divided project support between major and minor innovation and entrepreneurship projects.3 Of the 64 projects, 35 were considered major innovation and entrepreneurship projects and 29 minor projects. Analysis of major and minor innovation and entrepreneurship projects suggests that the intensity of effort on innovation and entrepreneurship activities was associated with achievement project outcomes (Appendix Table E.1). Major innovation and entrepreneurship projects were significantly more successful in achieving their major objectives than minor ones (89 percent versus 69 percent). Furthermore, the difference in successful achievement of project objectives between major and minor projects holds across country income levels (Appendix Table E.2). One explanation for the difference is that most of the major projects tend to be in agriculture and education, sectors where the Bank has had a stream of investments and developed a strong track record with successful performance. IEG disaggregated efficacy ratings by objective to get a better sense of the extent to which objectives directly related to innovation and entrepreneurship were achieved. The most common objective was improving competitiveness, but projects also included other objectives, such as improving the enabling environment and enhancing access to finance. Of the 200 objectives referring to each outcome in the project development objectives, 117 (59 percent) were directly related to innovation and entrepreneurship. Within sectors, 93 percent of all education, 78 percent of agriculture, and 43 percent of FPD projects had relevant objectives that supported innovation and entrepreneurship. This also suggests that Bank effort supporting innovation and entrepreneurship has been dominated by the education and agriculture sectors (Appendix Table E.3).
An Independent Evaluation | Chapter 4
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