Frugal Innovation and Development: Aides or Adversaries&quest

Peter Knorringa, Iva Peša, André Leliveld and Cees van Beers
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Peter Knorringa: International Institute of Social Studies – Erasmus University of Rotterdam, The Hague, The Netherlands
Iva Peša: Leiden University, Leiden, The Netherlands
André Leliveld: Leiden University, Leiden, The Netherlands
Cees van Beers: Technical University Delft, Delft, The Netherlands

The European Journal of Development Research, 2016, vol. 28, issue 2, 143-153

Abstract: Frugal innovation aims to bring products, services and systems within the reach of billions of poor and emerging middle-class consumers. Through significantly cutting costs while safeguarding user value, frugal innovation opens opportunities for new business models and may well disrupt innovation processes in entire economies. The debate on the developmental implications of frugal innovation is ideologically polarized. Whereas advocates suggest a business view of ‘win-win’ in which companies can earn profits while simultaneously alleviating poverty, critics argue that frugal innovation will merely exacerbate capitalist exploitation and inequality. In this contribution we argue that an empirical approach is needed to assess where and when frugal innovation is more likely to enhance inclusive development.

Date: 2016
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