The informal economy is a major component of the global south’s economy. In India, it constitutes over 90% of employment and significantly contributes to GDP. However, innovation within/by the informal settings remains largely invisible to formal research and policy frameworks. This neglect undervalues the ingenuity and problem-solving capabilities of individuals and communities operating in these settings and limits opportunities to leverage informal innovation for societal and economic advancement. Unlike the traditional understanding of innovation associated with corporations, R&D institutions, and universities, the informal settings develop innovation through local actors, grassroots networks, and traditional knowledge systems. These innovations are often frugal, sustainable, and adapted to the socio-economic realities of those involved. Women, particularly in artisanal clusters, play a major role in this innovation ecosystem but face barriers such as limited access to markets, systemic gender biases, and dwindling generational interest in crafts. During my Marie Skłodowska-Curie postdoctoral fellowship, I studied these dynamics through two contrasting sites of informal innovation in India: artisanal clusters and makerspaces. Artisanal clusters are community-based hubs that preserve and evolve traditional craft practices, while makerspaces are modern collaborative environments equipped with advanced tools like 3D printers, enabling creative experimentation. Both are informal settings because they function outside conventional institutional frameworks, relying on community-driven knowledge, self-organisation, and flexible, non-regulated processes to foster innovation and creativity. This informality allows them to adapt to local needs and constraints, making them critical spaces for grassroots problem-solving and inclusive innovation. By studying these two settings, I analysed how informal innovations are developed, shared, and sustained, and how networks, gender roles, and socio-cultural factors influence these processes. The research aimed to address gaps in understanding the unique characteristics of informal innovation and its potential contributions to sustainability, economic development, and social inclusion. The project’s results are significant for both academic and policy contexts. It advances the theoretical understanding of innovation by focusing on processes outside formal R&D structures and emphasising the unique dynamics of informal settings in the Global South. The findings offer actionable insights for policymakers, highlighting the need for targeted support to empower women artisans, improve market access, and sustain traditional crafts. They also underscore the importance of promoting inclusivity in collaborative spaces like makerspaces, encouraging greater participation of women in STEM-related innovation. The project’s outcomes are being shared through academic publications, planned policy briefs and public engagement activities to ensure their integration into scholarly debates and practical solutions for innovation governance.