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Implications of Frugal Innovations on Sustainable Development: Evaluating Water and Energy Innovations

Author

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  • Jarkko Levänen

    (School of Business, Aalto University, P.O. Box 11000, FI-00076 Aalto, Finland
    These authors contributed equally to this work.)

  • Mokter Hossain

    (School of Science, Aalto University, P.O. Box 15500, FI-00076 Aalto, Finland
    These authors contributed equally to this work.)

  • Tatu Lyytinen

    (School of Business, Aalto University, P.O. Box 11000, FI-00076 Aalto, Finland
    These authors contributed equally to this work.)

  • Anne Hyvärinen

    (School of Engineering, Aalto University, P.O. Box 15500, FI-00076 Aalto, Finland)

  • Sini Numminen

    (School of Science, Aalto University, P.O. Box 15500, FI-00076 Aalto, Finland)

  • Minna Halme

    (School of Business, Aalto University, P.O. Box 11000, FI-00076 Aalto, Finland)

Abstract

Frugal innovations are often associated with sustainable development. These connections, however, are based on anecdotal assumptions rather than empirical evidence. This article evaluates the sustainability of four frugal innovations from water and energy sectors. For the purposes of the evaluation, a set of indicators was developed. Indicators are drawn from sustainable development goals by the United Nations and they encompass central dimensions of sustainability: ecological, social and economic. In this article, frugal innovations are compared to solutions that are currently used in similar low-income contexts. Studied frugal innovations were found more sustainable in terms of energy production and water purification capacity than the existing solutions. In terms of social sustainability, larger differences between innovations were found. For example, business models of frugal energy solutions focus on capacity building and the inclusion of marginalized low-income people, whereas business models of water purification solutions focus on more traditional corporate social responsibility activities, such as marketing awareness campaigns and cooperation with non-governmental organizations. Three major sustainability challenges for frugal innovators were identified: (1) the proper integration of material efficiency into product or service systems; (2) the patient promotion of inclusive employment; and (3) the promotion of inclusive and sustainable local industrialization. The article concludes that despite indisputable similarities between frugality and sustainability, it is problematic to equate the two conceptually.

Suggested Citation

  • Jarkko Levänen & Mokter Hossain & Tatu Lyytinen & Anne Hyvärinen & Sini Numminen & Minna Halme, 2015. "Implications of Frugal Innovations on Sustainable Development: Evaluating Water and Energy Innovations," Sustainability, MDPI, vol. 8(1), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:8:y:2015:i:1:p:4-:d:61132
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    References listed on IDEAS

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    Cited by:

    1. Eugenia Rosca & Jack Reedy & Julia C. Bendul, 2018. "Does Frugal Innovation Enable Sustainable Development? A Systematic Literature Review," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(1), pages 136-157, January.
    2. Pascale Lehoux & Hudson Pacifico Silva & Renata Pozelli Sabio & Federico Roncarolo, 2018. "The Unexplored Contribution of Responsible Innovation in Health to Sustainable Development Goals," Sustainability, MDPI, vol. 10(11), pages 1-21, November.
    3. 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).
    4. Anne Hyvärinen & Marko Keskinen & Olli Varis, 2016. "Potential and Pitfalls of Frugal Innovation in the Water Sector: Insights from Tanzania to Global Value Chains," Sustainability, MDPI, vol. 8(9), pages 1-16, September.
    5. Josephat D. Sengura & Mu Renyan, 2024. "The Role of Entrepreneurial Orientation and Entrepreneurial Bricolage on Frugal Innovation and SMEs Sustainable Performance in Emerging Markets," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 10(4), pages 19-37, May.

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