Does quality matter for innovations in low income

markets?The case of the Kenyan mobile phone

sector.

Christopher FosterOxford University

christopher.foster@oii.ox.ac.uk

(work undertaken during PhD research in IDPM, University of Manchester)

Research focus

Innovations and low income groups

• What is an ‘inclusive innovation’?– more than innovation– impact; process

inclusion

• Is quality a key element in this?

Heeks(2013)

Innovation and quality

Low income markets = unclear

1) Extent of quality and effects in low income markets?

• BoP view vs Empirical cases

2) Innovation in/for low income markets is different.• Interlinked stages; Intermediaries; User

appropriation

3) What is effective policy around quality (if any)?• Policy as a process; Public/private standards

Mobile phone sector in Kenya

Scaled and low income focussed:

• Operator coverage: 92%

• Handset access: 70% • Mobile money: 83%

Quality Issues at the fore…

Quality concerns• Short term:

Difficult to evaluate. • Medium term:

Trust, cost, intermediaries

• Long term:Risk of ‘big bang’

“close to 2.4 million mobile phones in the market are counterfeit, representing 9.39 % of

the active mobile devices” (CCK 2013)

Drivers of quality declines• New lead actors

– Partnerships; manufacturers

• New intermedaries– Adaptation

• New users– Appropriation, use

Policy

• Existed in cases– Unclear implementation– Existence of extended intermediaries

ConclusionsQuality becomes key concern in how

innovations are inclusive….

• Recommendations– More focus on innovation and quality– Responsivity to appropriation– Lead firms and low income focus (USF, support)

• Policy is crucial– Firms: Low income entrance vs guarding quality– Policy Making + Implementation– Intermediaries: Policing and policy