belong to. For those reasons, people like Anil Gupta are convinced that, in order to improve and promote this potential, it is crucial to involve public sector through incubators, innovation contests, and financial support. Finally the concept of Inclusive Innovation aims to combine many elements of the approaches described above. It draws on the notion of enterprise as social agent that, apart from pursuing profit, must play a social role providing useful products and service that decrease inequality instead of promoting it. Such approach implicitly requires a close collaboration between public and private agents. 1 comparing BOP alternative frameworks Agents & Innovation Assumptions Purpose sources MNCs MNCs have to Opening underserved BOP Prahalad transform poor in markets. Fighting consumers providing poverty with a profit affordable products based approach BOP Hart & MNCs, small firms, MNCs can serve better Opening underserved – NGOs, communities the BOP creating markets fostering London alliances with local global-local agents cooperation Jugaad Enterprises in the South Frugality, that is Competitive “doing and Northern is advantages through more with less”, subsidiaries helping firms in the frugality south to growth Grassroots Common people and Ingenuity of poor is Empowerment of innovation communities huge and must be local communities. promoted by public Meeting basic needs institution to create endogenously. affordable and inclusive solutions
belong to. For those reasons, people like Anil Gupta are convinced that, in order to improve and promote this potential, it is crucial to involve public sector through incubators, innovation contests, and financial support. Finally the concept of Inclusive Innovation aims to combine many elements of the approaches described above. It draws on the notion of enterprise as social agent that, apart from pursuing profit, must play a social role providing useful products and service that decrease inequality instead of promoting it. Such approach implicitly requires a close collaboration between public and private agents. 1 comparing BOP alternative frameworks Agents & Innovation sources Assumptions Purpose BOP Prahalad MNCs MNCs have to transform poor in consumers providing affordable products Opening underserved markets. Fighting poverty with a profit based approach BOP – Hart & London MNCs, small firms, NGOs, communities MNCs can serve better the BOP creating alliances with local agents Opening underserved markets fostering global-local cooperation Jugaad Enterprises in the South and Northern subsidiaries Frugality, that is “doing more with less”, is helping firms in the south to growth Competitive advantages through frugality Grassroots innovation Common people and communities Ingenuity of poor is huge and must be promoted by public institution to create affordable and inclusive solutions Empowerment of local communities. Meeting basic needs endogenously.