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Field
Preliminary Report Abstract
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Before
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After
How do we inspire innovation and growth in the informal manufacturing industry
in the developing world? We investigate relieving both physical capital and human
capital constraints among informal woodworkers in Nairobi, Kenya. WorkShop, a tool
library project in Nairobi, offered a group of woodworkers a high-intensity treatment
consisting of five-weeks of training and access to shared, industrial-grade woodworking
tools. Another group was provided with a low-intensity treatment, consisting of a
digital training application. We find that the high-intensity treatment creates large
and significant increases in innovation outcomes such as the number of new designs,
and the likelihood of purchasing new tools. More modest improvements result from the
digital app alone. Overall we find that simultaneous relief of both physical and human
capital can spur innovation, however results in financial outcomes, such as firm profits,
are inconclusive.
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