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