Frugal innovation

Linda Annala Tesfaye and Martin Fougère

Chapter 57 in Elgar Encyclopedia of Innovation Management, 2025, pp 219-221 from Edward Elgar Publishing

Abstract: Frugal innovation is an approach to using fewer materials and finances to develop more affordable and simple products and services. The idea of resource-scarce, frugal innovation carries the potential of adapting to local needs and policies, in contrast with dominant global, often resource-intensive technological ideals. In doing so, frugal innovations are expected to address challenges related to poverty through more appropriate products and services. Frugal innovations reflect the change of focus from technology to market-oriented approaches, emphasizing private sector involvement, entrepreneurship and co-creation of innovations with local actors. We criticize the corporate-driven win-win narrative on frugal innovations, as it provides an individualized and simplistic solution to the global problem of poverty and obscures the negative impacts of corporate actions on many local communities where they extract resources.

Keywords: Affordability; Co-creation; Corporate power; Poverty; Sustainable innovation; Scarcity (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035306442
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