Consumer innovation in the poor versus rich world: Some differences and similarities
Innovative, distinct products and no cheaper copies of the rich world are essential in order to succeed at the Base of the Pyramid (BoP). However, this type of innovation requires more, in-depth information on the BoP and solution spaces, which are both difficult to access. Literature proposes to generate innovations bottom up through user involvement but remains silent on how to identify and integrate BoP consumers into the innovation process. One obvious solution is to connect up with and cooperate with innovating consumers of the BoP. However, this raises the questions whether 1) user innovation exists at the BoP at what levels of quality and 2) how firms can support the innovators to implement them into real world solutions. In this paper we specifically address the first question and analyze patterns and characteristics of a large sample of innovations developed by people living at the Indian BoP collected by the Indian National Innovation Foundation (NIF). We compare these innovations to consumer innovations in the developed world and examine effects of demographic, knowledge and context factors on innovation activity and the outcome. We find similarities with consumer innovation in the developed world and at the same time adaptations to the BoP context, e.g. fulfillment of rather basic necessities than hobby-related needs. Innovation quality is mostly driven by the innovator's knowledge and market recognition is highest for creative innovations developed for others. The paper further shows that consumer innovations are a good starting point for firms seeking solutions for BoP markets. Product needs can be systematically deducted and provide insights on how to identify promising consumer innovators at the BoP. Finally, this research contributes to better understand user innovation behavior in a specific context and by that enriches innovation research.
|Date of creation:||2012|
|Contact details of provider:|| Postal: Schwarzenbergstraße 95, 21073 Hamburg|
Phone: +49/ (0)40/ 42878 - 3777
Fax: +49/ (0)40/ 42878 - 2867
Web page: http://www.tu-harburg.de/tim/index_en.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- von Hippel, Eric, 1976. "The dominant role of users in the scientific instrument innovation process," Research Policy, Elsevier, vol. 5(3), pages 212-239, July.
- Schettino, Francesco & Sterlacchini, Alessandro & Venturini, Francesco, 2013.
"Inventive productivity and patent quality: Evidence from Italian inventors,"
Journal of Policy Modeling,
Elsevier, vol. 35(6), pages 1043-1056.
- Schettino, Francesco & Sterlacchini, Alessandro & Venturini, Francesco, 2008. "Inventive Productivity and Patent Quality: Evidence from Italian Inventors," MPRA Paper 7765, University Library of Munich, Germany.
- Glen L. Urban & Eric von Hippel, 1988. "Lead User Analyses for the Development of New Industrial Products," Management Science, INFORMS, vol. 34(5), pages 569-582, May.
- Viswanathan, Madhu & Sridharan, Srinivas & Ritchie, Robin, 2010. "Understanding consumption and entrepreneurship in subsistence marketplaces," Journal of Business Research, Elsevier, vol. 63(6), pages 570-581, June.
- Viswanathan, Madhu & Rosa, José Antonio, 2010. "Understanding subsistence marketplaces: Toward sustainable consumption and commerce for a better world," Journal of Business Research, Elsevier, vol. 63(6), pages 535-537, June.
- Christensen, Lisa Jones & Parsons, Helen & Fairbourne, Jason, 2010. "Building Entrepreneurship in Subsistence Markets: Microfranchising as an Employment Incubator," Journal of Business Research, Elsevier, vol. 63(6), pages 595-601, June.
- Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
- Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
- Weidner, Kelly L. & Rosa, José Antonio & Viswanathan, Madhu, 2010. "Marketing to subsistence consumers: Lessons from practice," Journal of Business Research, Elsevier, vol. 63(6), pages 559-569, June.
- Acosta, Pablo & Kim, Namsuk & Melzer, Illana & Mendoza, Ronald U. & Thelen, Nina, 2011. "Business and human development in the base of the pyramid: Exploring challenges and opportunities with market heat maps," Journal of World Business, Elsevier, vol. 46(1), pages 50-60, January.
- London, Ted & Anupindi, Ravi & Sheth, Sateen, 2010. "Creating mutual value: Lessons learned from ventures serving base of the pyramid producers," Journal of Business Research, Elsevier, vol. 63(6), pages 582-594, June.
- Rüdiger Hahn, 2009. "The Ethical Rational of Business for the Poor – Integrating the Concepts Bottom of the Pyramid, Sustainable Development, and Corporate Citizenship," Journal of Business Ethics, Springer, vol. 84(3), pages 313-324, February.
- Christina Raasch & Cornelius Herstatt & Phillip Lock, 2008. "The Dynamics Of User Innovation: Drivers And Impediments Of Innovation Activities," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 377-398.
- Franke, Nikolaus & Shah, Sonali, 2003. "How communities support innovative activities: an exploration of assistance and sharing among end-users," Research Policy, Elsevier, vol. 32(1), pages 157-178, January.
When requesting a correction, please mention this item's handle: RePEc:zbw:tuhtim:71. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.