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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

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  • Tiwari, Rajnish
  • Bergmann, Stephan

Abstract

Frugal innovations, i.e. affordable products and services with appropriately good quality, are getting increasingly important for securing long-term competitiveness in both, the developing world and in industry nations. Nevertheless, ensuring actual implementation of technology-driven frugal inventions remains an under-researched area. This study investigates modes and routines employed by techno-entrepreneurs from industry nations when innovating frugally. The study is based on the patent data of seven auto component sector firms from Germany with a documented history of contributing cost-effective solutions to frugal vehicles. With the help of a keyword analysis we identify the role of frugality in (patented) technical inventions. Select case studies of frugal inventions show that cost effectiveness and environmental sustainability can be often achieved by simplification of design and production process, as well as by eliminating avoidable complexity, e.g. through standardization. The study shows that frugal inventions in the investigated firms are often driven by individual inventors, while potentials of open global innovation networks are under-utilized. Furthermore, the study shows that frugality can (only) be achieved by a holistic approach that encompasses the entire value chain, including logistics and waste management. The results are potentially beneficial for techno-entrepreneurs across industry sectors and product domains.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:tuhtim:105
    DOI: 10.15480/882.1738
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    1. Aditi Ramdorai & Cornelius Herstatt, 2015. "Frugal Innovation in Healthcare," India Studies in Business and Economics, Springer, edition 127, number 978-3-319-16336-9, September.
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    4. Tiwari, Rajnish & Kalogerakis, Katharina, 2016. "A bibliometric analysis of academic papers on frugal innovation," Working Papers 93, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    5. 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.
    6. 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.
    7. Quitzow, Rainer, 2015. "Assessing policy strategies for the promotion of environmental technologies: A review of India's National Solar Mission," Research Policy, Elsevier, vol. 44(1), pages 233-243.
    8. Cornelius Herstatt & Rajnish Tiwari, 2017. "India’s Emergence as a Lead Market for Frugal Innovations: An Introduction to the Theme and to the Contributed Volume," India Studies in Business and Economics, in: Cornelius Herstatt & Rajnish Tiwari (ed.), Lead Market India, pages 1-10, Springer.
    9. Charles Leadbeater, 2014. "The Frugal Innovator," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-33537-1.
    10. Tiwari, Rajnish & Kalogerakis, Katharina, 2017. "Innovation pathways and trajectories in India's auto component industry," Working Papers 98, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    11. Bergmann, Stephan & Tiwari, Rajnish, 2017. "Innovationspfade in der deutschen Automobilzulieferindustrie: Eine Untersuchung aus der Frugalitätsperspektive," Working Papers 97, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    12. 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, September.
    13. Herstatt, Cornelius & Tiwari, Rajnish & Buse, Stephan, 2008. "India's National Innovation System: Key elements and corporate perspectives," Working Papers 51, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    14. 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.
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    Cited by:

    1. Achtelik, Timo & Herstatt, Cornelius & Tiwari, Rajnish, 2022. "Frugal sustainability: A new perspective to foster corporate sustainability," Working Papers 112, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management, revised 2022.

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    Keywords

    Frugal Innovation; Techno-entrepreneurship; Frugal Invention; Patent Analysis; Auto Components; Germany; Simplification;
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