“Frugal Innovation in Scholarly and Social Discourse”: New Paper on Trends and Societal Implications

Tiwari_et_al_2016_Frugal_Innovation_BMBF_ITA_CoverAs a part of our joint BMBF-ITA project with Fraunhofer Center for International Management and Knowledge Economy (MOEZ) in Leipzig we have published a new paper to assess trends and potential societal implications of frugal innovation by analyszing scholarly and social discourse.Apart from this the paper also reports results of our workshop held in Hamburg on January 12, 2016 to assess the potentials of frugal innovation in the specific context of Germany. The publication details are as follows:

Frugal Innovation in Scholarly and Social Discourse: An Assessment of Trends and Potential Societal Implications

Authored by: Rajnish Tiwari a, Luise Fischer b and Katharina Kalogerakis a

a Center for Frugal Innovation, Institute for Technology and Innovation Management, Hamburg University of Technology (TUHH), Hamburg, Germany

b Fraunhofer Center for International Management and Knowledge Economy (MOEZ), Leipzig, Germany

Abstract

The topic of frugal innovation is increasingly gaining relevance in social as well as scholarly discourse. Frugal innovations have been perceived by many to be a phenomenon generally confined to emerging economies where there are large groups of unserved consumers with unmet needs. But there is increasing evidence that this phenomenon is getting relevant also in the industrialized nations potentially affecting the long-term competitiveness of domestic firms not only overseas but also at home.

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Imperative of Frugal Innovations for Emerging Markets and Beyond

A Report on the Schmalenbach-TUHH Symposium

 By: Dr. Rajnish Tiwari
SG-Group

A group photo of symposium participants / photo: TIM-TUHH/Göldner

On the 9th and 10th October 2014 a well-received symposium on the topic of frugal innovation was held at the premises of Hamburg University of Technology (TUHH). The symposium, carrying the title “Frugal Innovation” und die Internationalisierung der FuE: Hintergründe, Strategien, Fallstudien (English title: “Frugal Innovation and the Internationalization of R&D: Backgrounds, Strategies and Case Studies”) was organized by the Working Group on Innovation Management of the Schmalenbach-Gesellschaft für Betriebswirtschaft e.V. (hereafter SG) in collaboration with the Center for Frugal Innovation (hereafter CFI) of TUHH. The symposium with close to 45 participants from the industry and academia was well-attended and saw some very interesting contributions by invited speakers. The insights generated here through a unique setting of business/academia interaction can potentially push the envelope of research and help expand the currently limited understanding of frugal innovations.

(Note: For a PDF version of this article click here, otherwise you may continue reading in HTML format)

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Schmalenbachgesellschaft und TUHH organisieren Symposium zum Thema “Frugal Innovation”

Innovationskugel 120x120Symposium

“Frugal Innovation”
und die Internationalisierung der FuE

Hintergründe, Strategien, Fallstudien

Hamburg, 9./10. Oktober 2014

Direkter Link zu allen weiteren Details sowie zur Anmeldung: hier anklicken


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“Too good” to succeed? Why not just try “good enough”!

High-tech, German companies are facing a curious problem: their products are reportedly “too good” for the expanding global markets

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A new paper by Rajnish Tiwari and Cornelius Herstatt with the title >> “Too good” to succeed? Why not just try “good enough”! Some deliberations on the prospects of frugal innovations << (Working Paper No. 76, TIM/TUHH)

Abstract

High-tech, German companies are facing a curious problem: their products are reportedly “too good” for the expanding global markets. So in a way they get “penalised” for offering a superlative quality. At a second glance, though, this doesn’t seem surprising. For, succeeding in the emerging markets like India or China often requires developing market-specific products and services that enable an attractive value proposition without taking recourse to (excessive) over-engineering. Furthermore, the innovations should be able to cope with, and successfully circumvent, the given infrastructural restrictions ever so present in the rural and semi-urban areas in such economies.

[Read/download the full paper, PDF, 740 KB]

Der Erfolg frugaler Produkte ist nicht aufzuhalten!

Pressemitteilung / Hamburg, 21.10.2013

Center for Frugal Innovation @ TUHH„Deutsche Baumaschinen zu gut für den Weltmarkt“ titelte Die Welt am 17.4.2013. Deutsche Maschinenbauer werden dem Bericht zufolge trotz Innovationstrophäen von den Märkten der Schwellenländer verdrängt. Die Gründe sind sowohl die fehlende Zahlungskraft als auch die abnehmende Zahlungsbereitschaft lokaler Kunden. Anstelle hoch komplexer („over-engineered“) und damit einhergehend teurer Produkte fragen sie erschwingliche und robuste Technik nach, die häufig aus anderen Ländern und insbesondere aus den Schwellenländern selbst kommt. Solche „good enough“ Produkte, Lösungen mit ausreichender Funktionalität bei guter Qualität und einem sehr wettbewerbsfähigen Preisniveau, kennzeichnen den Innovationsansatz „frugaler Innovationen“.

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