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Frugal innovation and analogies: Some propositions for product development in emerging economies

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  • Tiwari, Rajnish
  • Kalogerakis, Katharina
  • Herstatt, Cornelius

Abstract

Frugal products and services aim at satisfying the unsaturated demand of a large and growing middle class in many emerging economies. Although research has been conducted in regard to the strategic importance of frugal innovations, so far, the actual development process of such innovations has not been looked into in detail. Some examples show that inventive analogies are used to develop frugal innovations. For instance, the development of a frugal artificial heart was based on the heart structure of cockroaches, which led to a reduction of costs by 20 times. The aim of this paper is to examine the use of inventive analogies in creating frugal solutions and their impact on project results. Based on three explorative case studies from India, the authors generate preliminary evidence that analogies can make a significant impact on the successful development of innovations in environments that are characterized by severe resource constraints and high price-sensitivity. Furthermore, the inherent aim of frugal innovations to create radically new solutions with very restricted resources seems to stimulate the application of inventive analogies. The results point to some valuable learnings in regard to an effective employment of analogies. Besides, useful insights for companies that want to exploit market opportunities in the emerging economies are generated.

Suggested Citation

  • Tiwari, Rajnish & Kalogerakis, Katharina & Herstatt, Cornelius, 2014. "Frugal innovation and analogies: Some propositions for product development in emerging economies," Working Papers 84, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    • Handle: RePEc:zbw:tuhtim:84
    DOI: 10.15480/882.1173
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    References listed on IDEAS

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    1. Rao, Balkrishna C., 2013. "How disruptive is frugal?," Technology in Society, Elsevier, vol. 35(1), pages 65-73.
    2. 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, December.
    3. Cornelius Herstatt & Katharina Kalogerakis, 2005. "How To Use Analogies For Breakthrough Innovations," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 331-347.
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    1. Rossetto, Dennys Eduardo & Borini, Felipe Mendes & Bernardes, Roberto Carlos & Frankwick, Gary L., 2023. "Measuring frugal innovation capabilities: An initial scale proposition," Technovation, Elsevier, vol. 121(C).
    2. Wairokpam Premi Devi & Hemant Kumar, 2018. "Frugal Innovations and Actor–Network Theory: A Case of Bamboo Shoots Processing in Manipur, India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(1), pages 66-83, January.
    3. Eugenia Rosca & Jack Reedy & Julia C. Bendul, 2018. "Does Frugal Innovation Enable Sustainable Development? A Systematic Literature Review," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(1), pages 136-157, January.
    4. 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.
    5. Sharmelly, Rifat & Ray, Pradeep Kanta, 2021. "Managing resource-constrained innovation in emerging markets: Perspectives from a business model," Technology in Society, Elsevier, vol. 65(C).
    6. Zhenfeng Liu & Jian Feng & Jinfeng Wang, 2020. "Resource-Constrained Innovation Method for Sustainability: Application of Morphological Analysis and TRIZ Inventive Principles," Sustainability, MDPI, vol. 12(3), pages 1-23, January.
    7. Sharma, Gautam & Dahlstrand, Åsa Lindholm, 2023. "Innovations, informality, and the global south: A thematic analysis of past research and future directions," Technology in Society, Elsevier, vol. 75(C).
    8. Tiwari, Rajnish, 2016. "India's potential as a lead market for frugal innovation and the role of socio-cultural context factors," Working Papers 94, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.

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