Frugal Innovation


The concept explains how entrepreneurs and multinationals are capitalising on a new trend to innovate in emerging markets. It describes the advantages and drawbacks of the frugal innovation method and brings the concept to life using real examples of frugal innovation in practice.

Technique Overview

Frugal Innovation

Frugal Innovation Definition

The term Frugal Innovation - sometimes referred to as 'reverse innovation', 'inclusive innovation' and 'constraint-based innovation' - describes a type of innovation in which technological products are customised at low prices and high volumes in and for emerging markets (Dutta and Benavente, 2011). These innovations are not confined to technological breakthroughs but also include incremental process and product innovations aimed mainly at the middle or the bottom of the income pyramid (Bessant and Tidd, 2011).

Frugal Innovation Description *

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Business Evidence

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Examples of Frugal Innovation *

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Business Application

Frugal Innovation Implementation *

Success Factors of Frugal Innovation *

Measures of Frugal Innovation *

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Professional Tools

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Further Reading

Frugal Innovation Web Resources *

Frugal Innovation Print Resources *

Frugal Innovation References (4 of up to 20) *

  • Bessant, J., Tidd, J., 2011. Innovation and Entrepreneurship. John Wiley and Sons.
  • BCG (2007) Measuring Innovation 2007: A BCG Senior Management Survey, [Online], available at: http://www.bcg.com/documents/file15066.pdf.
  • Business Standard, 2011. Business Standard India 2011. Business Standard Books.
  • Cattaneo, O., Gereffi, G., Staritz, C., 2010. Global value chains in a postcrisis world: a development perspective. World Bank Publications.

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