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

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  • 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
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    References listed on IDEAS

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    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.

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    More about this item

    Keywords

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

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