Entrepreneurship and Innovations in Developing Countries

Economics of Technology and Innovatio

Frugal innovation: Some theoretical observations from innovation-economic and social-entrepreneurial perspectives

This chapter’s aims to link frugal innovation (FI) to some theoretical notions. First, it presents a brief overview of what FI is in order to identify characteristics that can be linked to theoretical notions. Second it links the concept of FI to 1) existing theoretical notions on profit-induced innovators and how these contribute to economic development and transformation, and 2) a conceptual way of thinking based on social entrepreneurs and their motives and opportunities to overcome resource constraint by designing and developing frugal innovation. Two takeaways on furthering theoretical attempts to understand frugal innovations are presented. The first one is working out of Comprehensive Schumpeterian models where dynamic patterns of polycentric innovation networks can be examined thoroughly. The second way is working further on the role of (networks of) social entrepreneurs as frugal innovators and providing them a broader validity.Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.Economics of Technology and Innovatio

Frugal Innovations in Technological and Institutional Infrastructure: Impact of Mobile Phone Technology on Productivity, Public Service Provision and Inclusiveness

This paper examines frugal innovations as processes, products and systems that affect the resource constraints that are typical for many developing countries. The focus is on the impacts of mobile phone technology-induced frugal innovations’ on the resource constraints and how these influence productivity, public services provision and inclusiveness. The effects are illustrated with the help of the case of the M-Pesa payment system and more specifically two particular services that use M-Pesa, i.e. Kilimo-Salama, an agricultural microinsurance through mobile phones and M-Farm, market access services for small farmers. The results reveal positive impacts on private sector productivity and public services provisions due to, among others, reduction of transaction length and hence costs. With regard to inclusiveness it is likely that in the short term the application of IT-induced frugal innovations will not be inclusive. In the longer term the inclusiveness of these innovations can be expected to increase.Economics of Technology and Innovatio

Reverse Innovation in Retrospect and Prospect: Quo Vadis?

Reverse innovation (RI) is considered as an innovation originally designed and developed for low-income customers living in severely resource-constrained environments in emerging and developing countries’ markets, with the potential to be diffused in developed markets. After more than a decade of academic studies, the potential role of RI in creating higher impact global innovations has progressively advanced. With the upsurge in research on RI, there is a need for scholars and business practitioners to retrospectively reflect on existing/current research state and prospect for future research directions. In this article, we examine the existing conceptualization and research landscape of RI to further identify and map future research directions. First, through a bibliometric review of a decade of research (2009–2019), we provide insights into the evolution of research topics in the field of RI including the identification of main research streams, influential scholars and works, important scholarly associations, and collaborative networks. Second, we combine these bibliometric findings with structural hole theory, weak ties, and social network analysis to derive future research lines on RI.Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.Economics of Technology and Innovatio

The Role of Universities in Inter-organizational Knowledge Collaborations

Organizations collaborate with external actors in order to acquire knowledge resources they cannot develop internally for economic and/or technical reasons. Mode 2 and Triple Helix models have examined the role of different organizational types in collaborative creation and knowledge use. This paper is an empirical investigation on whether universities differ from business-oriented or industrial organization types with regard to the extent of their knowledge collaborations. Using SEM methodology, it demonstrates the role of universities in knowledge collaboration through a survey of 472 organizations in the 7th Framework Programme for Research and Technological Development of the European Commission, Energy theme (FP7-Energy). In line with the Triple Helix model, universities are found to exhibit more extensive knowledge collaboration than businesses. Also, between-university collaborations are found to be more extensive knowledge collaboration relationship types than between-business relationships. The findings imply that (1) publically funded consortia should be aware that universities are more conducive and hence more effective in inter-organizational knowledge collaboration networks than other organizational types, particularly compared to for-profit business organizations. Universities should be included in these consortia. (2) Business organizations that do not have an extensive relationship with universities need to reconsider their partner portfolio and extend the knowledge collaboration of their network by connecting to more universities.(3) Policymakers should not only involve academic organizations but also include groups of more than one university per consortium to enable between-university knowledge collaboration to boost collaborative knowledge exploration and exploitation of the consortia.Economics of Technology and InnovationDelft Centre for Entrepreneurshi

Prioritize carbon pricing over fossil-fuel subsidy reform

While many climate activist groups enthusiastically advocate for the removal of fossil-fuel subsidies, we argue that this overstates both the climate effectiveness and political feasibility of such a strategy. Through synthesizing information from various global studies, we show that subsidies contribute to a relatively small portion of climate change and local externality problems, likely accounting for around 1%. We further argue that reform of fossil-fuel subsidies is hampered by various political and social factors, more so than the diffusion of carbon pricing. Based on these results, we argue that the far greater problem of unpriced externalities warrants a redirection or expansion of the enthusiasm for subsidy reform toward carbon pricing. This makes sense also as subsidy reform and carbon pricing essentially represent two sides of the same coin since both contribute to climate mitigation by raising fossil-fuel prices.Economics of Technology and Innovatio

Frugal Innovation and development: Aides or adversaries?

Frugal innovation aims to bring products, services and systems within the reach of billions of poor and emerging middle-class consumers. Through significantly cutting costs while safeguarding user value, frugal innovation opens opportunities for new business models and may well disrupt innovation processes in entire economies. The debate on the developmental implications of frugal innovation is ideologically polarized. Whereas advocates suggest a business view of ‘win-win’ in which companies can earn profits while simultaneously alleviating poverty, critics argue that frugal innovation will merely exacerbate capitalist exploitation and inequality. In this contribution we argue that an empirical approach is needed to assess where and when frugal innovation is more likely to enhance inclusive development.Economics of Technology and Innovatio

Rare gems or mundane practice? Resource constraints as drivers of frugal innovation

Frugal innovation and related concepts are receiving increasing scholarly attention. While recent progress in the conceptualisation of frugal innovation as a phenomenon has been considerable, insights into the antecedents of frugal innovation remain relatively poor. We add to this literature by systematically conceptualising, theorising and empirically testing the relationship between resource constraints and the propensity of firms to produce frugal innovations, drawing on concepts of problemistic search and opportunity recognition. We distinguish two levels of resource constraints (firm-level and firm environment-level), and two types of frugal innovation (internally oriented and customer-oriented), while using managerial experience as a moderating internal factor. We find that firm-level resource constraints have a strong effect on the propensity of firms to engage in internally oriented frugal innovation, although only so for firms with experienced managers. This effect is lower when these firms operate in an environment that also faces high constraints. We find no effect of resource constraints on customer-oriented frugal innovations, but find a surprising negative moderating effect of managerial experience. We discuss the theoretical and policy implications of these findings for the frugal and wider innovation literature. This study is the first large-scale empirical investigation of frugal innovation that estimates its prevalence. We find that frugal innovation is quite common when using the widest definition of frugal innovation. The majority of frugal innovations are mundane internal efficiency upgrades through capital investment.Economics of Technology and Innovatio

Optimal Distinctiveness: The Role of Platform Size and Identity

Recent theoretical advances hold that platforms comprise a second strategic dimension next to size, called identity, which describes the platform's technological and market scope. Letting go of platform size as the main criterion for platform value opens the possibility for platforms to pursue differentiation strategies with a distinct market positioning. The concept of optimal distinctiveness (OD) implies that differentiation can be optimized so that it maximizes performance. In this paper, we draw on recent OD research in and outside of the field of platforms and elaborate on the role of platform size within the distinctiveness framework. We discuss platform size and identity in the context of OD and suggest propositions for future research. The paper contributes to the management of platforms and OD in platform markets by showing how a platform's distinctiveness strategy may depend on its size. We contribute to platform management across various platform sizes and to research on OD in platform markets.Economics of Technology and Innovatio

Exploration Participants Engagement in Organisational Knowledge Sharing

The importance of knowledge sharing within most organisations is well recognised. While abundant KM systems have been matured to encourage individual engagement in knowledge sharing, practical evidences show a low success rate of KM systems. This paper reports on a qualitative exploratory multi-case study to explore level participants’ engagement in knowledge sharing along the design principle for engagement of participatory systems. Results show that KM systems using a combined approach of supply- and demand side KM strongly influence participants’ engagement for knowledge sharing.Economics of Technology and InnovationSystem Engineerin