This paper is structured as follows. Section 2 describes innovation theory and zooms in on home accessories in emerging economies. Section 3 offers a background to the (evolution of the) sector and firms. Section 4 explains the research methodology. Section 5 analyzes the level of innovation, also considering its type, mode and source. Section 6, 7 and 8 describe the absorptive capacity, global value chain and local innovation system. Section 9 reports the findings of the model and 10 the conclusions.