Sustainability and Frugal Innovation

The Disadvantages of Frugal Innovation and Possible Solutions

The disadvantages of frugal innovation are that the materials used to produce products like the wind driven turbo roof ventilator manufactured by Anchit Ispat Ltd. do not really last or do a very good job of providing the expected service attached to the concept. The wind driven turbo roof ventilator is meant to provide comfortable living by venting hot air out the roof (Anchit Ispat Ltd., 2009)—but what if there is no wind for long periods of time? This can be the case in many parts of India, so without even the slightest breeze this frugally designed innovation simply will not work at all.

One solution to the problem would be to harness sustainable energy such as solar power using solar roof panels that collect energy from the sun’s rays. This concept would work in India and allow energy to be stored that could then be used to power the ventilator and help keep homes cool all year round. However, sustainable concepts are much more likely in developed worlds where there are incentives to use them, often promoted by governments in terms of tax savings for consumers who buy products that are green (Gallagher & Muehlegger, 2011).

In a country like India, the incentives are not there and governments of emerging markets lack the resources to make sustainability a reality. As Brem and Ivens (2013) ask: “What role can sustainability play for businesses whose home base and/or strategic focus is on markets where customer demand and stakeholder pressure do not (yet) provide similar incentives for a new and sustainable look at innovation?” (p. 32). The reality is that for countries like India, sustainability is a good idea and would work, but when frugality is the name of the game, sustainability can require some upfront investment that can seem to go against the grain for consumers looking to save money upfront.

Upfront investment can actually save money over the long haul, however—and that is the main idea that drives sustainability. It might cost more to have solar panels installed on one’s roof, but the savings over time will be positive. Frugal innovation has its own appeal and it is not in fact very different from the appeal of sustainability: both promote the concept of eliminating waste—the key is that in order to be frugal over time, some initial investment or outlay has to be provided. Sustainability is the way towards frugality and can support frugal innovation, which by itself is limited in terms of what it can do (Knorringa, Peša, Leliveld & Van Beers, 2016).