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Frugal innovation and design changes expanding the cost-performance frontier: A Schumpeterian approach

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  • Lim, Chaisung
  • Fujimoto, Takahiro

Abstract

This paper redefines “frugal innovations”, particularly for physical products with relatively complex designs, by using a multidimensional framework that covers design, technological, and economic aspects of innovations, refining and broadening its initial definition as “low-cost innovations” for the unserved lower end of the mass market (ULM). By applying our framework, this paper clarifies and broadens the concept of frugal innovation. The applicability of this broadened concept is demonstrated by using this framework to illustrate two cases of radical frugal innovations in the automobile industry, Tata Motors Nano and Citroën 2CV, from an emerging country and an advanced country respectively.

Suggested Citation

  • Lim, Chaisung & Fujimoto, Takahiro, 2019. "Frugal innovation and design changes expanding the cost-performance frontier: A Schumpeterian approach," Research Policy, Elsevier, vol. 48(4), pages 1016-1029.
    • Handle: RePEc:eee:respol:v:48:y:2019:i:4:p:1016-1029
    DOI: 10.1016/j.respol.2018.10.014
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    References listed on IDEAS

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    Cited by:

    1. Beatrice Karitu & Stephen Muathe, 2023. "The New Venture Creation Approach: The Role of Business Incubators in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 1431-1441, May.
    2. Chakravarty, Sanghamitra, 2022. "Resource constrained innovation in a technology intensive sector: Frugal medical devices from manufacturing firms in South Africa," Technovation, Elsevier, vol. 112(C).
    3. Quan Cai & Ying Ying & Yang Liu & Wei Wu, 2019. "Innovating with Limited Resources: The Antecedents and Consequences of Frugal Innovation," Sustainability, MDPI, vol. 11(20), pages 1-23, October.
    4. Sarkar, Soumodip & Mateus, Sara, 2022. "Value creation using minimal resources – A meta-synthesis of frugal innovation," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    5. Barnikol, Julian & Liefner, Ingo, 2024. "Serving society at large. Operationalization and evidence of (advanced) frugal innovation in industrialized economies," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    6. Sanghamitra Chakravarty & Georgina Mercedes Gómez, 2024. "A Development Lens to Frugal Innovation: Bringing Back Production and Technological Capabilities into the Discourse," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(1), pages 82-101, February.
    7. Chiara Cannavale & Lorenza Claudio & Michele Simoni, 2021. "How social innovations spread globally through the process of reverse innovation: a case-study from the South Korea," Italian Journal of Marketing, Springer, vol. 2021(4), pages 421-440, December.
    8. Sarkar, Soumodip & Mateus, Sara, 2022. "Doing more with less - How frugal innovations can contribute to improving healthcare systems," Social Science & Medicine, Elsevier, vol. 306(C).
    9. Hossain, Mokter, 2021. "Frugal innovation: Unveiling the uncomfortable reality," Technology in Society, Elsevier, vol. 67(C).
    10. C. Annique Un & Chhomran Ou & Silvy Un Lafayette, 2022. "From the liability to the advantage of refugeeness," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 530-561, December.
    11. Hossain, Mokter, 2021. "Frugal innovation and sustainable business models," Technology in Society, Elsevier, vol. 64(C).
    12. Xi Zhang, 2022. "Incremental Innovation: Long-Term Impetus for Design Business Creativity," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    13. Sharmelly, Rifat & Ray, Pradeep Kanta, 2021. "Managing resource-constrained innovation in emerging markets: Perspectives from a business model," Technology in Society, Elsevier, vol. 65(C).

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