From the period 2000 to 2009 Zimbabwe’s economy suffered its sharpest contraction since independence. This period was characterised by hyper -inflationary environment, high interest, and unemployment, declining GDP, currency rate instability and political instability. Indeed what was once the bread basket of the region had fallen mightily, yet on paper Zimbabwe has produced some of the best economic policies in the region and they have remained a mere rhetorical statement as there are no means provided for their implementation or to realize its potential effect. There exists a gap between policy formulation and policy implementation hence the economic situation in the country remains unchanged. Therefore it can be concluded that monetary and fiscal policies are necessary but not sufficient instruments for economic development. The paper employs the national innovation systems (NIS) framework to analyse Zimbabwe’s economy. NIS framework is increasingly being recognized as a more suitable, adaptable and useful approach to development planning. This is a literature review based paper which posits that innovation technological change and the corresponding structural reconstruction of economy are the means to overcome the economic meltdown that has characterised Zimbabwe’s economic state since the turn of the century. This will in turn ensure steady recovery and sustainable economic growth. Besides innovation determinism shapes and positions the country in the global competition and consequently creating much needed employment opportunities.
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