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What type of innovator is a frugal innovator? An econometric exercise

with Mounir Amdaoud

Chapter 6 in The Economics of Frugal Innovation, 2023, pp 89-102 from Edward Elgar Publishing

Abstract: We contribute to the literature on FI by addressing the issue of the type of innovator behind a frugal innovator. We consider product innovator, process innovator, single innovator and complex innovator. We fill this gap through the study of a sample of a thousand French chemical firms surveyed by phone. Due to the interdependence and simultaneity between the different Schumpeterian strategies of innovation (product, process, single, complex) performed by the firms we estimate two Multivariate Probit Models. A first set of findings indicates unobservable factors increase both the probability to innovate frugally and the probability to achieve product or process innovation. Nevertheless, there is a more intense relationship between frugal innovations and product innovations compared to those in process. Environmental innovators and frugal innovators are interrelated. The most important result confirms the complementarity between frugal innovation and complex innovation strategy (product and process innovation). Investing in R&D sets up a driver of frugal innovation along the lines of what the literature tells us.

Keywords: Business and Management; Development Studies; Economics and Finance; Innovations and Technology; Sustainable Development Goals (search for similar items in EconPapers)
Date: 2023
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