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Frugal Innovations in Technological and Institutional Infrastructure: Impact of Mobile Phone Technology on Productivity, Public Service Provision and Inclusiveness

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  • Monica A. Altamirano

    (Deltares)

  • Cees P. van Beers

    (Technische Universiteit Delft, Technology, Policy and Management)

Abstract

This paper examines frugal innovations as processes, products and systems that affect the resource constraints that are typical for many developing countries. The focus is on the impacts of mobile phone technology-induced frugal innovations’ on the resource constraints and how these influence productivity, public services provision and inclusiveness. The effects are illustrated with the help of the case of the M-Pesa payment system and more specifically two particular services that use M-Pesa, i.e. Kilimo-Salama, an agricultural microinsurance through mobile phones and M-Farm, market access services for small farmers. The results reveal positive impacts on private sector productivity and public services provisions due to, among others, reduction of transaction length and hence costs. With regard to inclusiveness it is likely that in the short term the application of IT-induced frugal innovations will not be inclusive. In the longer term the inclusiveness of these innovations can be expected to increase.

Suggested Citation

  • Monica A. Altamirano & Cees P. van Beers, 2018. "Frugal Innovations in Technological and Institutional Infrastructure: Impact of Mobile Phone Technology on Productivity, Public Service Provision and Inclusiveness," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(1), pages 84-107, January.
    • Handle: RePEc:pal:eurjdr:v:30:y:2018:i:1:d:10.1057_s41287-017-0115-2
    DOI: 10.1057/s41287-017-0115-2
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    2. Dabić, Marina & Obradović, Tena & Vlačić, Božidar & Sahasranamam, Sreevas & Paul, Justin, 2022. "Frugal innovations: A multidisciplinary review & agenda for future research," Journal of Business Research, Elsevier, vol. 142(C), pages 914-929.
    3. Nick Bernards & Malcolm Campbell‐Verduyn & Daivi Rodima‐Taylor & Jerome Duberry & Quinn DuPont & Andreas Dimmelmeier & Moritz Huetten & Laura C. Mahrenbach & Tony Porter & Bernhard Reinsberg, 2020. "Interrogating Technology‐led Experiments in Sustainability Governance," Global Policy, London School of Economics and Political Science, vol. 11(4), pages 523-531, September.
    4. Davide Lanfranchi & Laura Grassi, 2022. "Examining insurance companies’ use of technology for innovation," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(3), pages 520-537, July.

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