Scientific achievements and technological change are important drivers of economic performance and increasingly affect the quality of life and social well-being of millions across the globe. For instance, new science-based technologies help develop energy saving transport systems, protect the environment, and improve health standards. Some generic technologies, such as Information and Communication Technologies (ICT) and biotechnologies, hold great promises in the fight against poverty due their pervasive scope and numerous applications in various fields like agriculture and water treatment.

It is generally assumed that science and technology (S&T) innovations contribute to poverty alleviation because their economic benefits trickle down to the poor. However, instead of benefiting the disadvantaged, the introduction of new technologies often results in a wider gap between the rich and the poor, as illustrated by the digital divide. This can be explained by the fact that technological innovations are primarily focused on meeting the demands of rich consumers, not the needs of the poor. To better fight poverty, we need to spur S&T innovations that generate public value – value not only for the markets but also for the poor.

A Multi-stakeholder Endeavor

The scale and magnitude of the challenge is such that it requires business to work with governments, civil society and the BoP itself.

Governments have expertise in identifying social goals and designing programs to achieve them. By framing the legal context in which BoP initiatives take place, the public sector can set up an enabling environment that can make it easier for BoP projects to take root and create an impact.

Businesses have the skills and the financial capacity to implement and innovate, and a proven ability to reach target markets and deliver products and programs to large numbers of people. Tapping the BoP market, however, requires businesses to redesign their business models and practices, and requires S&T-based innovations that address the needs of BoP customers.

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The involvement of civil society and grass-roots organizations is also critical. Civil society can act as intermediary between the local communities and the private and public sectors that often lack the skills or the time to engage with communities. Grass-roots organizations can also build bridges to local governments and help monitor on-the-ground results.

The role of the BoP is equally critical. The BoP, as the target and beneficiary of the innovations, will determine the success of the business approach - based on affordability, acceptance, accessibility - and ultimately measure the benefit that is promised by the innovations, and of the policies that foster these innovations.