Creating space for innovation—The case of mobile telephony in MSEs in Ghana

Mobile telephones have become important tools for socio-economic activities. In Africa, their diffusion is phenomenal. This paper adopts the innovation system conceptual framework for analyzing the state of mobile telephony in Ghana, the trends and implications for enhancing benefits. The paper emphasizes the role of the critical actors, and the internal and external environments they operate in. It uses primary and secondary data in analyzing the real and potential innovative use of mobile telephones by the MSEs in Ghana. It also examines the range of applications of mobile telephones in the MSEs, and assesses current public policies and the outcomes of such policies on innovations in MSEs. Finally, it advocates for a more holistic promotion of innovations from the broad perspectives. Efforts to stimulate innovation must be on the demand side of innovation as well as on the supply side.

► The mobile phone is a tool for business innovation.
► Innovation is central to socio-economic development.
► Policy action is vital to facilitate innovation.