countries on one hand, and on the other, addressing the needs of their majoritarian underserved poor population (see Table 3). Table 3 Unpacking innovation in developing countries – Features Stakeholders Approach Grassroots Very limited capital Single entrepreneurs Grassroots innovation innovators Low technology Local communities Inclusive Labour intensive Micro firms Innovation Clusters of micro-firms Jugaad Innovation Standard Small and medium Cooperatives Jugaad Innovation capitals innovators Small firms Catch-up, Low or medium imitation and Network or clusters of technology absorption firms Labour intensive Big investors Big capitals National or public firms BOP Prahalad Financial markets Multinational BOP Hart & influence corporations London Multinational cooperation Classic R&D High tech and R&D activities In this I attempted to demonstrate that the developing world is a unique context to understand how innovation evolves in resource-constrained environments. What is more, the developing world, and in particular the emerging economies (BRICS), is already testing alternative approaches to innovation that include innovative concepts such as frugality, affordability, inclusiveness and empowerment of common people. We described how the developing world reacts to affordability, institutional and resources constrains with endogenous ingenuity. We illustrated some of the theoretical approaches that are emerging to explain innovation among the poor. Some people look at market dynamic to alleviate poverty, others advocate for new strategic challenges to bridging formal and informal economy. On the other hand many other argue that social aspects will dominate the future scenarios. As a consequence, organizations with strong social orientation are likely to serve better the BOP. In any case, a fundamental error is to think that low income countries are following the same path that developed countries went through during the industrial
countries on one hand, and on the other, addressing the needs of their majoritarian underserved poor population (see Table 3). Table 3 – Unpacking innovation in developing countries Features Stakeholders Approach Grassroots innovators Very limited capital Low technology Labour intensive Single entrepreneurs Local communities Micro firms Clusters of micro-firms Grassroots innovation Inclusive Innovation Jugaad Innovation Standard innovators Small and medium capitals Low or medium technology Labour intensive Cooperatives Small firms Network or clusters of firms Jugaad Innovation Catch-up, imitation and absorption Big investors Big capitals Financial markets influence Multinational cooperation High tech and R&D activities National or public firms Multinational corporations BOP Prahalad BOP Hart & London Classic R&D In this I attempted to demonstrate that the developing world is a unique context to understand how innovation evolves in resource-constrained environments. What is more, the developing world, and in particular the emerging economies (BRICS), is already testing alternative approaches to innovation that include innovative concepts such as frugality, affordability, inclusiveness and empowerment of common people. We described how the developing world reacts to affordability, institutional and resources constrains with endogenous ingenuity. We illustrated some of the theoretical approaches that are emerging to explain innovation among the poor. Some people look at market dynamic to alleviate poverty, others advocate for new strategic challenges to bridging formal and informal economy. On the other hand many other argue that social aspects will dominate the future scenarios. As a consequence, organizations with strong social orientation are likely to serve better the BOP. In any case, a fundamental error is to think that low income countries are following the same path that developed countries went through during the industrial
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