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Frugal Innovation in Africa
Presentation INNOFRUGAL 2015
Helsinki, April 17th 2015
Cees van Beers
(TBM, Delft University of Technology)
Peter Knorringa
(ISS, Erasmus University Rotterdam)
André Leliveld
(African Studies Centre, Leiden)
Centre for
Frugal
Innovation
in Africa
Frugal Innovation in Africa
Background
Leiden-Delft-Erasmus strategic alliance:
8 new research centres to demonstrate
synergies
Centre for
Frugal
Innovation
in Africa
Frugal Innovation in Africa
Website: www.cfia.nl
Facebook page: Centre for Frugal Innovation in Africa
Twitter: @frugalafrica
Centre for
Frugal
Innovation
in Africa
Frugal Innovations in Africa:
Basic elements of a definition
• Dramatically lowering costs & high, medium or low tech origin
• Designed & engineered specifically to target BoP consumers
• User value, functionality, ‘good enough’ quality
Centre for Frugal Innovation in Africa
Frugal Innovations in Africa:
Advanced and contested elements of a definition
• Polycentric innovation: e.g. Dutch MNCs and/or SMEs in
partnerships with African producers, traders, MSIs, PPPs, Labs etc
•
Pro-active exploration of local employment generation
•
Ethics and basic environmental & social standards
Locally produced
briquetting machine,
Mali
Centre for Frugal Innovation in Africa
Frugal Innovation in Africa
Kind of Innovation
1.
2.
3.
4.
Cost Innovations:
Good-Enough Innovations:
Frugal Innovations:
Reverse Innovations:
same functionality at lower cost
tailored functionality at lower costs
new functionality at low costs
selling low-cost innovations
originally developed for emerging
markets, elsewhere
Based on: Zeschky et.al (2014)
Centre for
Frugal
Innovation
in Africa
Frugal Innovation in Africa
Cost Innovation
Good Enough Innovation
Centre for
Frugal
Innovation
in Africa
Frugal Innovation in Africa
Frugal Innovation
Reverse Innovation
Centre for
Frugal
Innovation
in Africa
Frugal Innovations in Africa: multi-disciplinary focus
• Leiden: medical anthropology, Africa know-how, history, law (IPR)
• Delft: engineering, design, innovation management/
entrepreneurship, ethics
• Erasmus: inclusive business models, entrepreneurship, local
economic development
Frugal Thermometer:
• robust, easy to use
• fits in local health system
• reduces pressure on health system
• next step: is there a business
model?
https://www.youtube.com/watch?v=NieCDfH6Rgk&feature=autoshare
Centre for Frugal Innovation in Africa
Frugal Innovation in Africa
TAHMO Weather station (TU Delft Water Management)
Centre for
Frugal
Innovation
in Africa
Core question & challenge
Under which conditions are frugal innovations more
developmental and how to increase that likelihood?
Move beyond case studies and develop more systematic
analytical frameworks, also to strengthen developmental and
policy relevance.
funding as first step: framework on how and when to most
effectively integrate ethical & developmental dimensions in product
development and business model.
Centre for Frugal Innovation in Africa
Frugal Innovation in Africa
Philips Africa Innovation Hub Nairobi: Community Life Centers (CLCs)
Centre for
Frugal
Innovation
in Africa
Frugal Innovation in Africa
Different kinds of business models:
a) Multinational enterprises: Phillips, General Electric, Unilever,
Tata: MNEs most dominant business model
b) Small and medium entrepreneurs
c) Start-up entrepreneurs: high failure rate
d) Polycentric innovation: combination of a) with b) or c)?
Centre for
Frugal
Innovation
in Africa
Frugal Innovation in Africa
How to bring in inclusiveness?
1. Local Economic conditions included
by means of
2. Local Entrepreneurship
Centre for
Frugal
Innovation
in Africa
Local Economic Development
1. Low-income customers demand new products, services and
systems addressing specific constraints in local economy
(M-Pesa)
2. Local entrepreneurs contribution to global value chains be
improved by frugal innovations that reduce unreliability and
instability of existing technological and institutional
infrastructures. (CLCs)
Example: frugal weather stations provide data that can be
communicated to farmers by cell phone improving decision
making.
Centre for Frugal Innovation in Africa
Advantages of local entrepreneurship in polycentric business models
1. Distribution channel rolling out
innovations to local communities,
particularly relevant in remote areas.
2. Important sources of local user values
and hence important as (co-) innovators
providing new ideas and values in
innovation process.
Centre for
Frugal
Innovation
in Africa
Frugal Innovations in Africa:
Some National Links
• The Partnerships Resource Center, Erasmus University
Rotterdam
• BoP Innovation Center, Utrecht
• Dutch Ministry of Foreign Affairs: International
Cooperation
• The Netherlands Organization for Scientific Research
Centre for
Frugal
Innovation
in Africa
Frugal Innovations in Africa:
Some International Links
EU-COST proposal submitted: European Network on
Frugal Innovation with partners from: Finland, Germany, India,
Italy, Latvia, Netherlands, Poland, UK.
EADI working group on Frugal Innovations and Development
Collaboration network in Africa with:
• Institute of Development Studies, Nairobi
• African Centre for Technology Studies, Nairobi
• Policy Research and Development Institute, Dar-es-Salaam
• Tshwane University of Technology, South Africa
• Stellenbosch University, South Africa
Centre for
Frugal
Innovation
in Africa
Frugal Innovation in Africa
Thank you
Centre for
Frugal
Innovation
in Africa