This study—the result of a collaboration between CSIS and the JICA Research Institute in Japan—reviews U.S. and Japanese public and private approaches to innovation, including building innovation ecosystems and promoting smart cities technology. It also presents two case studies that explore a specific innovative technology and its development impact. First is innovation-enabling platforms, including the Bohol Fabrication Lab, in the Philippines. Second is innovative approaches to urbanization, including a smart cities approach, in Jakarta, Indonesia. The report discusses challenges and approaches to supporting innovation in developing country contexts. It concludes with recommendations and final thoughts for developing-country governments, bilateral donors and multilateral organizations, and other actors to create an agenda around operationalizing transformative innovation for sustainable development and poverty reduction.