"In economic growth the largest differences between developed and developing economies are in innovation performances. Innovation is critical for growth, but it is increasingly important for addressing major development changes, such as those related to inclusion and sustainability.
Recognizing this pattern, many countries are promoting innovation and entrepreneurship. Market and government failures and other bottlenecks impede innovation and entrepreneurship, particularly in developing countries. These countries need to build the capacity to find, absorb, and use new technologies and processes as well as foster entrepreneurs who can take risks, look for finance, and bring new products and processes to market.
The Independent Evaluation Group reviewed the investment portfolio in innovation and entrepreneurship interventions over the past decade across the World Bank Group. IEG found that this investment is substantial, but its effectiveness can be enhanced through broad, systemic ef
