The World Bank Group supports investment and advisory projects that help build innovation capacities and improve incentives for private enterprises to invest in innovations. These projects are intended to address the issues related to the enabling environment and the four targeted areas discussed in Chapter 1 (Figure 1.1). This chapter describes the characteristics of these projects and the types of interventions and mechanisms that have been used to implement them. The analysis is based largely on data from a portfolio review of projects that supported innovation and entrepreneurship based on IEG’s criteria (Appendix B). The chapter also uses a country lens to get a better sense of the extent to which Bank Group activities fostered innovation and entrepreneurship at the country level. IEG examined the projects that were implemented during the evaluation period by the World Bank Group in five countries at different stages of development.1 The choice of countries was based on the extent of Bank Group involvement in innovation and entrepreneurship projects, as well as the countries’ inclination to undertake innovative initiatives. In addition to its lending and non-lending portfolio, the World Bank supports innovation policies that complement its efforts through initiatives by the World Bank Institute and infoDev (Boxes 3.1 and 3.2). The World Bank Institute supports the Bank’s operational work and its country clients with new approaches to capacity development. The Institute works in seven thematic areas: climate change, fragile and conflict-affected states, governance, growth and competitiveness, health systems, public-private partnerships, and urban development.
BOX 3.1 Knowledge and Innovation at the World Bank Institute
The World Bank Institute supports Bank clients in three main areas: Open Knowledge: This area connects World Bank Institute clients to global knowledge and learning about the “how” of reform. In fields where content is mature, the Institute codifies global knowledge into training programs to help its clients test development know-how. Such courses can be found on the new e-learning platform, the e-Institute. The World Bank Institute also supports peer-to-peer learning and helps broker knowledge exchanges among developing countries. It encourages Bank country teams to incorporate knowledge exchanges in country programs and is promoting the Global Development Learning Network as a worldwide knowledge exchange implementation platform. continued on page 43
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World Bank Group Support for Innovation and Entrepreneurship