Abstract

Existing research on frugal innovations underrates the potential for sustainability that arises from the development of advanced frugal innovations (AFI) and the widespread adoption of frugal design principles. Based on a distinction between advanced and unrefined frugal innovations, this article examines factors for AFI generation using the concept of innovation systems and the multi-level perspective, and discusses the differences arising from the contexts of emerging and advanced economies. The paper explains which institutional and systemic conditions support the development of advanced frugal innovations. In particular, it discusses the interplay of the actors, a common frugal mindset, and the institutional framework. The way these factors play out depends on the system and transition conditions in advanced and emerging economies. The paper shows that applying the perspective of AFI and frugal design principles opens a new perspective for research on frugal innovation.

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