The Democratizing Effect of Frugal Innovation: Implications for Inclusive Growth and State-Building

Purpose
– The aim of this paper is to examine the impact of frugal innovation in the fields of livelihood provision, education, infrastructure, and distribution networks on state-building in countries where a significant proportion of the population lives at the base of the pyramid (BoP).

Design/methodology/approach
– The paper reviews the literature on frugal innovation, democratization and state-building, offers practical examples in support of the conceptual arguments, and provides research propositions for empirical assessment.

Findings
– The paper provides support for the notion that the creation of more inclusive markets through frugal innovation contributes to socio-economic development, which in turn strengthens democratization and state-building.

Practical implications
– Multinational corporations can have a positive impact on democratization by offering for-profit products and services to serve BoP markets.

Originality/value
– The paper provides novel insights into the role that frugal innovation plays in state-building and democratization.