Abstract
Innovation is the heart of development and a key driver for increased productivity. This study follows an innovation-driven approach for improved local economic development in the context of South Africa. Local economies face the challenge of stagnant development, which has persisted for years. Therefore, this calls for research and policy intervention to critically address this challenge and find solutions that can be implemented to enhance economic development and growth in local economies. The primary aim was to investigate how innovation-driven approaches can bring economic transformation to local economies by centring local plans around Science, Technology and Innovation, mainly focusing on innovation.1 The main research question explored how local economies in South Africa can more effectively employ innovation-driven policies to promote economic transformation. The study also addressed four sub-questions, which focused on understanding what innovation-driven policies and strategies South Africa is using to promote economic change in local areas, the current status of innovation-driven strategies in the Gauteng province, the barriers to implementing innovation-driven policies in South African local economies based on Gauteng and lastly, lessons for South Africa from Brazil's experience. This is a sectoral study that focuses on the agricultural sector, which has innovative activities that stimulate economic growth in local economies. The study has adopted Local Innovation and Production Systems as its theoretical framework, which focuses on local innovation and production systems and encourages the integration of Science, Technology and Innovation in the local sphere. A qualitative methodology was employed to gather information and collect data, whereby key informant interviews were conducted, and existing literature was reviewed. A thematic analysis was applied to analyse the data collected, which assisted in presenting valuable insights. The research findings suggest that agro-processing and hydroponics are innovative agricultural practices extensively used in the province and positively impact local economies. Furthermore, the findings indicate that innovative agriculture has a more significant impact on value chains in local businesses than traditional agriculture, increasing productivity and employment opportunities. Moreover, innovation improves competitiveness, sustainability, and productivity in local economies. This study is
1 The National Framework for Local Economic Development: Creating Innovation-driven Local Economies, 2018- 2028., (2018). Cooperative governance. Pretoria
imperative because it significantly contributes to theory and practice. The study findings also assist local economies in their aspirations of achieving economic transformation and inclusive development.