Digital Transformation and Entrepreneurial Innovation in Developing Asia: Comparative Evidence and Policy Lessons
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Publication Type:
Publisher:
Asian Development Bank (ADB)
Publication:
November 2025
This brief explores whether digitalization promotes entrepreneurial innovation in developing economies, focusing on Asia, and how policymakers can provide support.
Digital technology is reshaping economies worldwide, offering developing regions new opportunities for productivity, markets, and growth. Entrepreneurs stand to benefit most, as they are often more agile than larger firms in adopting new tools and reaching underserved customers.
The brief highlights that digitalization is a powerful driver of entrepreneurial innovation across developing economies, but its impact depends on skills and institutions—not infrastructure alone. It explores the need for policies that help equip entrepreneurs to use digital tools, institutions that lower barriers to participation, and strategies that ensure benefits extend beyond larger firms and advanced hubs.