Measuring innovation in the informal economy – formulating an agenda for Africa

Purpose This paper reviews options for measuring innovation in the informal sector and proposes an agenda for future work. Design/methodology/approach It starts with a review of surveys of innovation in the formal business sector, and related definitions, as sources of questions and definitions which could be applied to the informal sector. Then, labour force surveys, and those that are combined with establishment surveys to measure informal sector activities, are examined with a view to adding questions, or modules, on the measurement of innovation in the informal sector. In addition, the advantages of using semi-structured interviews and ad hoc questionnaires in specific sub-sectors of the informal sector are explored. Findings The discussion leads to a possible agenda for future work on the development of policy relevant indicators of innovation in the informal economy. Two viable scenarios emerge: (i) adding innovation questions to existing large-scale surveys of the informal economy and/or (ii) condu...