Linking Universities and marginalised communities examines how South African universities engage with the informal sector in marginalised communities to improve livelihoods through inclusive innovation. The knowledge imperatives of universities are explored in relation to the public good and social justice, and the roles of innovation and technology transfer. Case studies provide examples of coherence between teaching, research, innovation and community engagement, and illustrate the enablers and constraints to such interaction. These insights find policy application in the spheres of higher education, science and technology, and economic development. The analysis also provides lessons for innovation studies, pointing out the need to refine the notion of innovation so that it may be more appropriate for the developmental challenges of countries such as South Africa.