IDEAS home Printed from https://ideas.repec.org/p/zbw/tuhtim/96.html
   My bibliography  Save this paper

Frugal innovation in Germany: A qualitative analysis of potential socio-economic impacts

Author

Listed:
  • Tiwari, Rajnish
  • Fischer, Luise
  • Kalogerakis, Katharina

Abstract

Frugal innovation is gaining traction globally, not only in emerging economies, but also in the industrialized world. The root causes of frugality's acceptance as a societal value may however differ according to the social context, especially between the developing and the developed world. In this paper we present the results of a trend analysis in Germany that has been conducted as a part of a BMBF-supported project aiming to investigate "Potentials, Challenges and Societal Relevance of Frugal Innovations in the Context of Global Innovation Competition". The research was conducted in two steps. In a first step preliminary insights were generated by an extensive literature review and 3 focus groups with 30 experts discussing the relevance of frugal innovation for Germany. These insights were then verified in 20 semi-structured interviews with additional experts from cross-sections of the German society. The experts opined that frugal products and services (should) focus on the customers' core needs and reduce unnecessary complexity while adhering to high quality standards. They predicted a trend towards frugal solutions in Germany due to a complex interplay of various factors. One notable factor was a growing appreciation of moderation and voluntary simplicity by parts of the German society leading to "frugal choices". The second widespread consensus was that frugal innovations are necessary to secure long-term competitiveness of German companies in fast-growing, unsaturated markets in the emerging economies. Several challenges were pointed out concerning the actual implementation of frugal concepts in the product development process. An overwhelming reliance on high tech-driven and complexity-embracing innovation pathways by engineers in German firms was characterized as a powerful obstacle in implementing frugality.

Suggested Citation

  • Tiwari, Rajnish & Fischer, Luise & Kalogerakis, Katharina, 2017. "Frugal innovation in Germany: A qualitative analysis of potential socio-economic impacts," Working Papers 96, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    • Handle: RePEc:zbw:tuhtim:96
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/156688/1/883183072.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    2. Freeman, Chris, 2002. "Continental, national and sub-national innovation systems--complementarity and economic growth," Research Policy, Elsevier, vol. 31(2), pages 191-211, February.
    3. Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
    4. Rajnish Tiwari, 2017. "Frugality in Indian Context: What Makes India a Lead Market for Affordable Excellence?," India Studies in Business and Economics, in: Cornelius Herstatt & Rajnish Tiwari (ed.), Lead Market India, pages 37-61, Springer.
    5. Edgar G. Hertwich, 2005. "Consumption and Industrial Ecology," Journal of Industrial Ecology, Yale University, vol. 9(1‐2), pages 1-6, January.
    6. Jennifer W. Spencer, 2003. "Firms' knowledge‐sharing strategies in the global innovation system: empirical evidence from the flat panel display industry," Strategic Management Journal, Wiley Blackwell, vol. 24(3), pages 217-233, March.
    7. Gabriel R. G. Benito & Rajneesh Narula (ed.), 2007. "Multinationals on the Periphery," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59304-6, March.
    8. Edgar G. Hertwich, 2005. "Consumption and the Rebound Effect: An Industrial Ecology Perspective," Journal of Industrial Ecology, Yale University, vol. 9(1‐2), pages 85-98, January.
    9. Buse, Stephan & Tiwari, Rajnish, 2014. "Global innovation strategies of German hidden champions in key emerging markets," Working Papers 85, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    10. Charles Leadbeater, 2014. "The Frugal Innovator," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-33537-1, March.
    11. Rajnish Tiwari & Cornelius Herstatt, 2014. "Aiming Big with Small Cars," India Studies in Business and Economics, Springer, edition 127, number 978-3-319-02066-2, December.
    12. Björn Ambos & Tina C. Ambos, 2007. "Outside the Triad: An Examination of International R&D Investments within Peripheral Economies," Palgrave Macmillan Books, in: Gabriel R. G. Benito & Rajneesh Narula (ed.), Multinationals on the Periphery, chapter 8, pages 188-205, Palgrave Macmillan.
    13. Rajnish Tiwari & Luise Fischer & Katharina Kalogerakis, 2017. "Frugal Innovation: An Assessment of Scholarly Discourse, Trends and Potential Societal Implications," India Studies in Business and Economics, in: Cornelius Herstatt & Rajnish Tiwari (ed.), Lead Market India, pages 13-35, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Victor Platon & Florin Marius Pavelescu & Marius Surugiu & Simona Frone & Raluca Mazilescu & Andreea Constantinescu & Florina Popa, 2023. "Influence of Eco-Innovation and Recycling on Raw Material Consumption; Econometric Approach in the Case of the European Union," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    2. Kalogerakis, Katharina & Fischer, Luise & Tiwari, Rajnish, 2017. "A comparison of German and Indian innovation pathways in the auto component industry," Working Papers 100, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    3. Krohn, Malte & Herstatt, Cornelius, 2018. "The question of a frugal mindset in Western MNCs: Exploring an emerging phenomenon with a systematic literature review," Working Papers 103, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    4. Zahid Yousaf & Magdalena Radulescu & Crenguta Ileana Sinisi & Luminita Serbanescu & Loredana Maria Păunescu, 2021. "Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment," Sustainability, MDPI, vol. 13(10), pages 1-28, May.
    5. Kalogerakis, Katharina & Tiwari, Rajnish & Fischer, Luise, 2017. "Potenziale frugaler Innovationen: Handlungsimplikationen für das deutsche Forschungs- und Innovationssystem," Working Papers 99, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benedetto, Graziella & Rugani, Benedetto & Vázquez-Rowe, Ian, 2014. "Rebound effects due to economic choices when assessing the environmental sustainability of wine," Food Policy, Elsevier, vol. 49(P1), pages 167-173.
    2. Dimitropoulos, John, 2007. "Energy productivity improvements and the rebound effect: An overview of the state of knowledge," Energy Policy, Elsevier, vol. 35(12), pages 6354-6363, December.
    3. Tiwari, Rajnish & Bergmann, Stephan, 2018. "What pathways lead to frugal innovation? Some insights on modes & routines of frugal, technical inventions based on an analysis of patent data in German auto components industry," Working Papers 105, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    4. Galvin, Ray, 2014. "Estimating broad-brush rebound effects for household energy consumption in the EU 28 countries and Norway: some policy implications of Odyssee data," Energy Policy, Elsevier, vol. 73(C), pages 323-332.
    5. Van Lancker, Jonas & Mondelaers, Koen & Wauters, Erwin & Van Huylenbroeck, Guido, 2016. "The Organizational Innovation System: A systemic framework for radical innovation at the organizational level," Technovation, Elsevier, vol. 52, pages 40-50.
    6. Barkemeyer, Ralf & Young, C. William & Chintakayala, Phani Kumar & Owen, Anne, 2023. "Eco-labels, conspicuous conservation and moral licensing: An indirect behavioural rebound effect," Ecological Economics, Elsevier, vol. 204(PA).
    7. Schiller, Frank, 2009. "Linking material and energy flow analyses and social theory," Ecological Economics, Elsevier, vol. 68(6), pages 1676-1686, April.
    8. Belaïd, Fateh & Youssef, Adel Ben & Lazaric, Nathalie, 2020. "Scrutinizing the direct rebound effect for French households using quantile regression and data from an original survey," Ecological Economics, Elsevier, vol. 176(C).
    9. Figge, Frank & Thorpe, Andrea Stevenson, 2019. "The symbiotic rebound effect in the circular economy," Ecological Economics, Elsevier, vol. 163(C), pages 61-69.
    10. Yasuhiko Hotta & Tomohiro Tasaki & Ryu Koide, 2021. "Expansion of Policy Domain of Sustainable Consumption and Production (SCP): Challenges and Opportunities for Policy Design," Sustainability, MDPI, vol. 13(12), pages 1-19, June.
    11. Blum, Bianca & Hübner, Julian & Müller, Sarah & Neumärker, Karl Justus Bernhard, 2018. "Challenges for sustainable environmental policy: Influencing factors of the rebound effect in energy efficiency improvements," The Constitutional Economics Network Working Papers 02-2018, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.
    12. Edeltraud Haselsteiner & Barbara Smetschka & Alexander Remesch & Veronika Gaube, 2015. "Time-Use Patterns and Sustainable Urban Form: A Case Study to Explore Potential Links," Sustainability, MDPI, vol. 7(6), pages 1-29, June.
    13. Estrella Trincado & Antonio Sánchez-Bayón & José María Vindel, 2021. "The European Union Green Deal: Clean Energy Wellbeing Opportunities and the Risk of the Jevons Paradox," Energies, MDPI, vol. 14(14), pages 1-23, July.
    14. Galvin, Ray, 2020. "Who co-opted our energy efficiency gains? A sociology of macro-level rebound effects and US car makers," Energy Policy, Elsevier, vol. 142(C).
    15. David Font Vivanco & Jaume Freire‐González & Ray Galvin & Tilman Santarius & Hans Jakob Walnum & Tamar Makov & Serenella Sala, 2022. "Rebound effect and sustainability science: A review," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1543-1563, August.
    16. Liu, Jingru & Sun, Xin & Lu, Bin & Zhang, Yunkun & Sun, Rui, 2016. "The life cycle rebound effect of air-conditioner consumption in China," Applied Energy, Elsevier, vol. 184(C), pages 1026-1032.
    17. Druckman, Angela & Jackson, Tim, 2009. "The carbon footprint of UK households 1990-2004: A socio-economically disaggregated, quasi-multi-regional input-output model," Ecological Economics, Elsevier, vol. 68(7), pages 2066-2077, May.
    18. Chen, Qian & Zha, Donglan & Wang, Lijun & Yang, Guanglei, 2022. "The direct CO2 rebound effect in households: Evidence from China's provinces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 155(C).
    19. Monia Niero & Charlotte L. Jensen & Chiara Farné Fratini & Jens Dorland & Michael S. Jørgensen & Susse Georg, 2021. "Is life cycle assessment enough to address unintended side effects from Circular Economy initiatives?," Journal of Industrial Ecology, Yale University, vol. 25(5), pages 1111-1120, October.
    20. Vincent Sennes & Jacques Breillat & Francis Ribeyre & Sandrine Gombert, 2009. "Local policies for reducing the ecological impact of households: the case study of a suburban area in France," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(5), pages 1031-1049, October.

    More about this item

    Keywords

    Frugal Innovation; Germany; Affordability; Moderation; Emerging Markets; Voluntary Simplicity; Affordable Excellence; Frugality 3.0;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tuhtim:96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ittuhde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.