Around 4 billion people are currently living below income of $3000 a year, constituting the largest and poorest socio-economic group in the world. This group of people, termed as the Base of the Pyramid (BoP), can be a lucrative market for innovative companies due to its massive size when targeted with innovative products and appropriate business models. The innovations targeted for the BoP markets, which aspire to help in eliminating poverty and promoting inclusive economic growth through market mechanisms, are called inclusive innovations. Inclusive innovation is an emerging practice. While some of the inclusive innovations have been successfully introduced and deployed, some other innovations, although having potential, have failed to achieve the aimed level of impact. This failure can, at least partially, be related to the lack of information about the BoP context. This research is conducted in collaboration with BoP Innovation Center (BoPInc), an intermediary organization working to facilitate inclusive innovations. The thesis has the objective to propose a preliminary methodological framework to collect, analyze, and use relevant strategic information about the inclusive innovation context for facilitating organizations looking to operate in the base of the pyramid markets. A four-step approach is followed to develop the methodological framework, termed as Inclusive Innovation Context Analysis Framework (IICAF). First, existing theoretical frameworks are reviewed to have a holistic perspective of inclusive innovation from relevant fields. The literature review includes the study of theoretical concepts and frameworks related to the characteristics and process of inclusive innovation, innovation context, as well as organizational capabilities and strategies. The theoretical frameworks, identified during the literature study, are then systematically combined to form an integrated framework. In the second step, the IICAF is refined further, by consulting experts in the field of inclusive innovation. In the third step, practices of inclusive innovation in the Netherlands are studied, compared with the insights from the theory and analyzed to reach to the final version of the IICAF. In the forth step, the methodology to use the proposed IICAF is described and illustrated, using a demonstration case of a company developing inclusive innovation. The IICAF systematically categorizes the appropriate contextual information that needs to be collected, and presents the methodology to use this collected information to make necessary strategic decisions in the inclusive innovation process. The IICAF recommends to use a systemic perspective by collecting relevant information about the innovation context and categorizing the information into three broad categories of (a) Market, (b) Institutions, and (c) Infrastructure. Infrastructure can be considered as the hardware of the innovation system. Institutions can be considered as the software, which enables operation of the infrastructure (hardware) to deliver the desired output, i.e. inclusive innovation. The characterisitics of the desired output (inclusive innovation) is influenced by the existing market conditions. To study the market, infrastructural and institutional conditions of the innovation context, a structural and a functional study of innovation system is recommended. To analyze and use the contextual information obtained from innovation system studies, it is recommended to perform an organizational scan to assess the objectives, resources, and capabilities of the organization itself. The organizational scan helps to utilize the information about innovation context to make appropriate strategic choices in the inclusive innovation process to develop innovations with desirable inclusive innovation characteristics. The research has identified a list of eight desirable inclusive innovation characteristics. The research has also formulated the stages related to the process of inclusive innovation. The IICAF delineates the organizational and contextual information to be used step by step in the inclusive innovation process. The IICAF is divided into six steps: (1) strategic phase, (2) idea generation, (3) market scanning, (4) focused study, (5) marketing mix, and (6) scaling. The most important use of the IICAF is in the market selection process. The market selection process is divided into two stages: market scanning, where a group of attractive markets are short-listed, and, focused study, where the most optimal market of entry is selected. Information about the structure of an innovation system can be used in the market scanning phase. To study the structure of the innovation system, collecting secondary quantitative data from built-in databases is recommended. The quantitative data are analyzed using a multi-criteria decision analysis procedure. The attractive markets can be selected based on the overall weighted score for each alternative markets, where weights to each criteria are provided based on the organization’s objectives and resources. The focused study aims to select the optimal market. To do so it collects, information about the functions of innovation systems of the attractive markets that are identified in the market scanning. The information about functions of innovation system can be collected and used in parallel with the business model development process, by following a methodology developed and described in the thesis as ‘why-what-who-how’ analysis. The why-what-who-how analysis can be used to identify a ‘window of opportunity’ for entering the most optimal market. From the research it can be concluded that by combining frameworks used to study the inclusive innovation, innovation context, and organizational strategies, BoP markets can be studied systematically. The findings of the research can contribute in streamlining the inclusive innovation process. The IICAF is primarily developed as a market development tool for organizations willing to deploy inclusive innovations. However, the IICAF can also be used by policy-makers, researchers, intermediary organizations, and governments who are interested in analyzing the inclusive innovation context. BoP Innovation Center, for whom the framework is designed for in this research, can play an intermediary role in supporting organizations to apply the IICAF.