Technology for development: Understanding how frugal innovation processes can achieve both commercial success and developmental impact in the base of the pyramid

Advocates for the eradication of poverty through private sector initiatives contend that firms can establish new markets, achieve significant profits as well as eradicate poverty in the BoP through frugal innovations. However, the BoP markets have proved to be an extremely difficult proposition for firms and only a few frugal innovations have been able to meet with commercial and developmental success. There is simply, not enough clarity in existing literature on how frugal innovations can be developed and implemented so as to cause both private profits and socio-economic development in the BoP. Therefore, this study sought to understand the determinants of the success of frugal innovations in the BoP by adapting the conventional functions of the innovation system framework to the case of frugal innovation processes through literature review, expert interviews and case study analysis. The result was the first version of a systemic framework to understand what conditions have to be created and managed so that frugal innovation processes are successful both commercially and in terms of developmental impact in the BoP. The framework is a foundation upon which further empirical research can be conducted to understand the success of frugal innovations in the BoP.Technology, Policy and ManagementEngineering, Systems and Service