This working paper gives an assessment on the role of entrepreneurship and innovation in deepening Ethiopia’s economic transformation. It seeks to identify the gaps observed in the private sector arena that could be narrowed by enhancing entrepreneurship and innovation. In addition, it looks at the policy space around innovation and entrepreneurship ecosystem in Ethiopia in order to tease out areas that need further attention.

The issue brief has benefitted from ideas exchanged during the 6th Executive Ideas Exchange Forum held on September 25, 2014, a policy dialogue organized by UNDP in collaboration with Addis Ababa University, on the theme “The role of Entrepreneurship and innovation for Ethiopia’s Transformation” and review of different literature.