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Furugal Innovation Or Constraint-Based Innovation

753 Words4 Pages

There is no unanimity when it comes to defining frugal innovations. The term “frugal innovation” became popular after a special report in The Economist on innovation in emerging markets. It said that, “frugal innovation or constraint-based innovation is not just a matter of exploiting cheap labor (though cheap labor helps). It is a matter of redesigning products and processes to cut out unnecessary costs” (Woolridge, 2010). While Sehgal, Dehoff and Panneer (2010) observed that frugal innovation is “powerful and ultimately essential approach to developing products and services in emerging markets.” In another article in The Economist in 2011, Frugal Innovation is simply defined as “taking the needs of poor consumers as a starting point and working backwards; creating frugal products and services that are both cheap, easy to use and serving the needs.” This article also present that this phenomenon is called as “reverse innovation”, “frugal innovation” or “constraint-based innovation”.

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