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Frugal Innovation in Emerging Markets

Marco Zeschky, Bastian Widenmayer, Oliver Gassmann · 2011 · Research-Technology Management

Summary. Western multinational corporations struggle to develop frugal innovations—affordable, good-enough products for resource-constrained consumers—because their business models target affluent markets. Local R&D subsidiaries in emerging countries prove more effective at creating these innovations. Granting these subsidiaries substantial autonomy, including control over product portfolios, enables Western firms to successfully compete in frugal innovation markets alongside local corporations.

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Zeschky, M., Widenmayer, B., & Gassmann, O.. (2011). Frugal Innovation in Emerging Markets. Research-Technology Management. https://doi.org/10.5437/08956308x5404007

Details

DOI
10.5437/08956308x5404007
Countries
Switzerland
Regions
Europe
Categories
innovation-theory, regional-innovation-systems, general-innovation
Added
2026-04-28