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Frugal Innovation and Development: Aides or Adversaries?

Author

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  • Peter Knorringa

    (International Institute of Social Studies – Erasmus University of Rotterdam, The Hague, The Netherlands)

  • Iva Peša

    (Leiden University, Leiden, The Netherlands)

  • André Leliveld

    (Leiden University, Leiden, The Netherlands)

  • Cees van Beers

    (Technical University Delft, Delft, The Netherlands)

Abstract

Frugal innovation aims to bring products, services and systems within the reach of billions of poor and emerging middle-class consumers. Through significantly cutting costs while safeguarding user value, frugal innovation opens opportunities for new business models and may well disrupt innovation processes in entire economies. The debate on the developmental implications of frugal innovation is ideologically polarized. Whereas advocates suggest a business view of ‘win-win’ in which companies can earn profits while simultaneously alleviating poverty, critics argue that frugal innovation will merely exacerbate capitalist exploitation and inequality. In this contribution we argue that an empirical approach is needed to assess where and when frugal innovation is more likely to enhance inclusive development.

Suggested Citation

  • Peter Knorringa & Iva Peša & André Leliveld & Cees van Beers, 2016. "Frugal Innovation and Development: Aides or Adversaries?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(2), pages 143-153, April.
    • Handle: RePEc:pal:eurjdr:v:28:y:2016:i:2:p:143-153
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