ENTREPRENEURIAL INNOVATION AND STRUCTURAL TRANSFORMATION IN EMERGING ECONOMIES

Abstract

This study explores the role of entrepreneurial innovation as a driver of structural transformation in emerging economies, with a comparative focus on Nigeria, China, and India. While entrepreneurship is widely recognized for its potential to stimulate economic growth and job creation, its strategic alignment with industrial policy and innovation ecosystems remains uneven across developing nations. Using a mixed theoretical framework that integrates Schumpeterian innovation theory with structuralist development perspectives, this study investigates how entrepreneurship catalyzes sectoral diversification, inclusive industrialization, and technological upgrading. Through a critical review of national strategies and empirical outcomes, the paper highlights how policy coherence, digital infrastructure, and investment in human capital shape the trajectory of innovation led growth. The study employs qualitative comparative research methodology.  Findings reveal that countries with targeted innovation policies, such as India’s Startup India initiative and China’s “Mass Entrepreneurship and Innovation” strategy, exhibit more coordinated outcomes compared to Nigeria, where fragmented policies and institutional gaps persist. The paper argues that entrepreneurial innovation when supported by enabling regulatory, financial, and institutional frameworks can significantly contribute to long term resilience, employment generation, and productivity gains in emerging markets. Recommendations are made for policy redesign, emphasizing innovation hubs, education reform, and entrepreneurship financing. The study contributes to global discourses on innovation, policy, and sustainable transformation, offering insights relevant to the Sustainable Development Goals and post pandemic recovery in the Global South.