Innovation in the informal sector: The case of plastic recycling firms in Mexico

Abstract

Beyond job creation, informal economic activities have received little recognition for their contribution to economic systems. However, in recent years, new research trends have suggested that enterprises in the informal sector have productivity potential that can be encouraged through technological innovation. Nevertheless, the majority of these studies come from Asian and African countries, relegating Latin America’s contributions to a marginal proportion. Through a qualitative analysis, this paper makes a pioneering contribution to the topic from a Mexican perspective, corroborating the presence of different types of innovations in the informal plastic industry and sizing its reach and social diffusion.