Evaluating the drivers of frugal innovation and its relation to sustainability — A Systematic Literature Review

Abstract

Frugal innovation can be considered as a cost-effective, simplified solution for developing countries' specific problems. This concept can potentially assist with alleviating poverty and waste and has been linked to sustainability in various publications. This literature review aimed to investigate the drivers of frugal innovation and its link with sustainability. The study shows similarities between frugal innovation and sustainability; however, the two are not the same. This review considered case studies and literature reviews to determine links between sustainability (economic, environmental, and social) and frugal innovation. The results show that frugal innovation is not always sustainable at its core, and in many cases, sustainability is an afterthought in its design. Different diffusion paths and the adoption of frugal innovation in developed countries were evaluated. The review illustrates how firms in developed countries can capitalise on frugal innovation. The review also considers definitions of frugal innovation, factors that affect the success of frugal innovation and the requirements for sustainable, frugal innovation. Most published research is related to India, and thus future research may focus more on other developing countries.