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Figure 1: The Local Innovation and Production Systems (LIPS) framework Source: CeSTII 2021
The advantage of a LIPS framework is the emphasis on local embedded, interaction and collaboration, including under- standing knowledge sharing, resource access and collabora- tive problem-solving within local networks. Furthermore, the framework highlights how informal businesses adapt to their environment, such as how they respond to changing market conditions, incorporate new technologies, and navigate reg- ulatory challenges. It also brings attention to how the policy and socio-economic context shapes production and innova- tion activities.
Study area and data collection
This study analysed data from the 2017-2018 Informal Sector
Innovation Survey, a larger study conducted in Sweetwaters, a peri-urban area in Pietermaritzburg’s uMsunduzi Municipality (Figure 2). The survey was a key component of a groundbreak- ing project that used a mix of methods to measure innova- tion and learning in informal enterprises (CeSTII 2021). Pieter- maritzburg is the second-largest city in KwaZulu-Natal, and it serves as the province’s administrative and legislative capital. Much of uMsunduzi Local Municipality falls under the leader- ship of tribal authorities. According to Statistics South Africa (Stats SA 2023), the municipality has roughly 16 3993 house- holds with an average of 3.6 people per household and isiZulu is the main language spoken. Ward 1 and its surrounding area was selected as the study area for the larger study (Figure 2).
Figure 2: Study area Source: HSRC Geospatial Unit
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