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Christopher Foster Oxford University christopher.foster@oii.ox.ac.uk

Does quality matter for innovations in low income markets? The case of the Kenyan mobile phone sector. Christopher Foster Oxford University christopher.foster@oii.ox.ac.uk (work undertaken during PhD research in IDPM, University of Manchester). Research focus.

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Christopher Foster Oxford University christopher.foster@oii.ox.ac.uk

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  1. Does quality matter for innovations in low income markets?The case of the Kenyan mobile phone sector. Christopher Foster Oxford University christopher.foster@oii.ox.ac.uk (work undertaken during PhD research in IDPM, University of Manchester)

  2. 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)

  3. 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

  4. Mobile phone sector in Kenya Scaled and low income focussed: • Operator coverage: 92% • Handset access: 70% • Mobile money: 83% Quality Issues at the fore…

  5. 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)

  6. Drivers of quality declines • New lead actors • Partnerships; manufacturers • New intermedaries • Adaptation • New users • Appropriation, use

  7. Policy • Existed in cases • Unclear implementation • Existence of extended intermediaries

  8. Conclusions Quality 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

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