Development aid 2.0 — Towards innovation-centric development co-operation: The case of Finland in Southern Africa

Well-established innovation systems and knowledge-based societies are becoming significant drivers for developing countries socio-economic development. In this context, innovation systems and policies have also become increasingly important tools for development co-operation between the Global South and the Global North. The objective of this study is to scrutinize how innovations have become important parts of development co-operation. The methodology of the research is based on strategy analyses, interviews and observations. The main findings of the study reviles that Finland is among the global leaders in knowledge-based development and is a forerunner in innovation-centric development co-operation. The motivations behind innovation-oriented development policy are simultaneously altruistic and instrumentalist. Finland seeks to utilize its best innovation know-how to achieve development co-operation. At the same time, innovation know-how is used to emphasize Finland's own innovation brand and to create new business opportunities for Finnish enterprises. Innovation-focused development co-operation projects are sought in the aid-receiving countries and those strengthen Finland's reputation as a high-tech knowledge economy. However, the relationships among the main objectives of development policy are more intricate. Finally, as a recommendation, we suggest that to foster long-term sustainable development of local communities in developing countries through an innovation system, the general concept of innovation systems must be adjusted to local contexts and practises; both bottom-up approaches and local innovations must also be included in innovation-related policies.