Grassroots innovations in the informal economy: insights from value theory

Abstract

The scholarship on innovation hitherto has prioritized exchange value, scalability and large scale commercialization, overlooking the other significant human centric values discussed in 'value theory'. Consequently, innovations in the informal economy are often undermined due to their inability to generate exchange values. This paper identifies and examines the suitability of the nuanced set of values discussed in value theory for informal sector grassroots innovations. Based on ten years of ethnographic research in different parts of Jammu and Kashmir in India, we find that these innovations generate a diverse set of values, ranging from use value to socially embedded reciprocal exchange value to different forms of relational and non-relational intrinsic values. At a juncture when strengthening alternative innovation approaches occupies a priority, these findings have important bearing on innovation policy scholarship.