Definition: The client adopts or operationalizes a product, internal process, technology or financing structure that is new or not widely used in the domestic sector. Note that “product” includes both physical goods as well as financial products while “domestic sector” can refer to the national market in small countries and regional markets in larger countries. Innovations in supplier or client relationships are covered in the Market Linkages Improved or Expanded Indicator. IFIs who wish to gather additional information on the quality of the result reported may use ‘commentary’ to do so.
Rationale: The indicator captures the adoption or operationalization of innovative business practices, ranging from the financial structuring of the client company to the business processes it uses to deliver products/services. The indicator can be used to track innovative technology transfer without qualifying from where the technology originated. IFIs may wish to undertake more detailed assessment/monitoring of certain aspects of client innovation, but this serves as a good overall capture of innovation.
Unit: Yes/No, with commentary
