Abstract
Frugal innovation (FI) has been getting growing attention from scholars, practitioners, and policymakers for its promise to serve low-income customers with affordable solutions. As a recently emerged concept, it has been explored from different perspectives. We know the positive side of the concept, but its negative side has remained unexplored. To gain a holistic understanding, it is important to develop balanced knowledge of the topic. Hence, this study aims to unveil some uncomfortable reality of the concept. It points out the definition dilemma, overlapping concepts, and scope of frugal innovation. It reveals the predicament associated with small firms, large firms, and policymakers. The study highlights the publication, authorship, and geographical limitations. Thus, it provides implications for theory, practice, and policy.
Highlights
Innovation is defined as the implementation of ideas in the forms of products or services [1]
It is a key to generate economic growth, and a small positive change of economic growth leads to very significant dif ferences in income over time [2]
Frugal innovation (FI) is perhaps the latest concept introduced in the management literature of such a paradigm
Summary
Innovation is defined as the implementation of ideas in the forms of products or services [1]. Some concepts such as appropriate technology were started long ago as an ideological movement with small-scale, environmentally sound, people-centered, and locally managed projects [11]. Prior study indicates that co-design is essential for sustained affordable products for low-income customers. Hossain et al [15] have presented the most compre hensive definition: “a resource-scarce solution (i.e., product, service, pro cess, or business model) that is designed and implemented despite financial, technological, material or other resource constraints, whereby the final outcome is significantly cheaper than competitive offerings (if available) and is good enough to meet the basic needs of customers who would otherwise remain un(der)served”. It means applying science and technology to design simple products minimizing resource use throughout the entire life cycle [16]. We need to have a clear definition that can set a well-fenced boundary of the concept
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