Posts Tagged ‘BRIC’

“Mastering the Frugal Challenge”: A Symposium on the Feasibility of Frugal Innovations

Wednesday, September 18th, 2013

We at the Center for Frugal Innovation are planning a symposium on the feasibility and implementation of frugal innovations in firms. The symposium with the title “Mastering the Frugal Challenge: Innovating for Global Growth through Affordable Solutions” will take place on 19th November 2013 in Hamburg. A detailed programme agenda and the registration modalities will be released soon at this space. The symposium will be preceded by a research seminar with invited guests from universities and research institutions on the 18th November in Hamburg.

In the meantime for any enquiry please contact:, and/or our team.

Telephone contact: Dr. Rajnish Tiwari (+49 40 42878 3776)

“Aiming Big with Small Cars”

Saturday, August 10th, 2013

A forthcoming publication on the emergence of a lead market for frugal products in India:

Aiming Big with Small Cars: Emergence of a Lead Market in India

By: Rajnish Tiwari and Cornelius Herstatt

India Studies in Business and EconomicsSpringer Verlag, Series: India Studies in Business and Economics

(2014, Approx. 180 p. 42 illus.)

Hardcover edition (ISBN 978-3-319-02065-5, Due: December 31, 2013)
E-book edition (to be available shortly, ISBN 978-3-319-02066-2)

About the book

  • Critical analysis of today’s dominant logic and extension of lead market paradigm
  • Delivers new assessment tools for identifying emerging lead markets
  • Explores opportunities for frugal innovations and their constituent characteristics
  • Detailed analysis of a sunrise industry in India​

Frugal Innovations for the ‘Unserved’ Customer: An Assessment of India’s Attractiveness as a Lead Market for Cost-effective Products

Thursday, March 1st, 2012

New publication from the Institute for Technology and Innovation Management, Hamburg University of Technology (TUHH)

Title: Frugal Innovations for the ‘Unserved’ Customer: An Assessment of India’s Attractiveness as a Lead Market for Cost-effective Products
Authored by: Rajnish Tiwari and Cornelius Herstatt
Publication date: March 2012


This study builds on our previous work, which had questioned the validity of certain assumptions of the lead market theory in the face of changing ground realities in a globalized world. Sustained economic growth and proven technological capabilities in some “emerging economies” like China and India call for a reassessment of the appropriateness of the “conventional wisdom” that had held true until recently. While our previous study had “re-built” a theoretical background of the lead market model by introducing some new elements, and doing away with certain others, with the help of two in-depth case studies; the purpose of the present study is to specifically assess India’s potential as a lead market for cost-effective frugal innovations.

The study crystallizes the inherent characteristics of frugal innovations, their development process and market success in the domestic and overseas markets by analyzing four successful product innovations from selected industries in India. The factors identified thus are then incorporated in the theoretic model to derive propositions about India’s lead market potential. Whereas affordability and economies of scale have traditionally constituted the primary concern for frugal innovations, an increasing shift towards “value proposition” is identified. Intensifying competition and growing customer aspirations are changing the nature of frugal innovations. The hitherto unserved customer demands attractive designs and modern technologies to come out of his shell of “non-consumption”. Our research confirms that frugal innovations can benefit end-consumers and firms, simultaneously. Better-designed products also have positive impact on the lead market potential, creating a virtuous cycle. The study also discovered that the increasing need for sophistication coupled with continued cost pressures is shifting the product development processes into the domain of “open global innovation”, which also helps reduce the negative country-of-origin effects faced by developing countries. The research would have implications for location decisions in setting up global innovation/R&D activities.

Keywords: Lead Markets; Frugal Innovations; India; Bottom of the Pyramid; Global Innovation; Open Innovation; Emerging Economies.

Science and technology: falling patent quality hits innovation, says OECD

Thursday, September 22nd, 2011

Source: OECD press release, dated 20.09.2011:

20/09/2011 – The quality of patent filings has fallen dramatically over the past two decades. The rush to protect even minor improvements in products or services is overburdening patent offices. This slows the time to market for true innovations and reduces the potential for breakthrough inventions, according to a new OECD report.

The Science, Technology and Industry Scoreboard 2011finds that patent quality has declined by an average of around 20 per cent between the 1990s and 2000s, a pattern seen in nearly all countries studied.Studying patent quality in different sectors has also allowed the OECD to assess which countries are doing best in innovation. The United Kingdom, for example, produces semiconductor and environmental technology patents that are above average in quality.


Korea has a competitive advantage in ICT-related innovations. And Germany is strong at innovating in solar energy.

Patents from inventors in the United States, Germany and Japan are the most highly cited, which suggests they are true innovations being used by many firms in their products to generate further innovations.


But while these countries produced about 70% of the top 1% of highly cited patents between 1996 and 2000,  their share had fallen to 60% five years later.


The Nordic countries and China, India and Korea have seen their share increase of highly cited patents. The European Union is leading in clean energy technologies, representing nearly 40% of all filings by the late 2000s, followed by the US and Japan. In this area, China now ranks 8th worldwide.


The OECD report ranks research by universities worldwide. Overall, 40 of the top 50 are located in the United States, with the rest in Europe. But a more diverse picture emerges when looking at subject areas. In social sciences, for example, the UK leads with 16 of the top 50 institutions after the US. And there is growing evidence that universities in Asia are emerging as leading research institutions: China has 6 in the top 50 in pharmacology, toxicology and pharmaceutics. And Hong Kong University is among the best in computer science, engineering and chemistry.


The US leads the world in research and development (R&D), with around USD 400 billion of spending on R&D in 2009. China is today second, with over one third of that total, followed by Japan. The European Union as a whole spent about USD 300 billion in 2009.


The Scoreboard tracks trends in science, technology and industry to understand how innovation is evolving and how countries are positioning themselves in the global knowledge economy. It includes more than 180 internationally comparable quality indicators and provides a broad range of statistics for other major economies such as Brazil, China, India, and the Russian Federation.


The complete Scoreboard 2011 is available at and provides easy access to individual sections and links to the databases used. Each indicator is also downloadable in PDF format.


For further information about this report, please contact Alessandra Colecchia (tel. + 33 1 45 24 94 12), OECD’s Science, Technology and Industry Directorate.

OECD: “Pseudo-Erfindungen erschweren Marktzugang für Innovationen”

Thursday, September 22nd, 2011

Quelle: Pressemitteilung der OECD, 20.09.2011.

(Paris/Berlin – 20. September 2011) Deutschland hat im Zeitraum 2000 bis 2005 so viele Patente im Europäischen Patentamt registriert wie kein anderes Land auf der Welt. Gleichzeitig verschlechtert sich die Qualität von Patentanmeldungen auch hierzulande seit zwei Jahrzehnten und verlängert so die Zeit, die neue Produkte brauchen, um schließlich auf den Markt zu gelangen. Das geht aus der jüngsten OECD-Publikation zu Wissenschaft und Industrie, dem “Science, Technology and Industry Scorebard 2011” hervor, das heute von der Organisation für wirtschaftliche Zusammenarbeit und Entwicklung veröffentlicht wurde.


Mit beinahe 70.000 Patenten war Deutschland zwischen 2000 und 2005 innovativer als die USA mit knapp 60.000 und Japan mit 48.500 Patenten. Die Qualität der Patentanmeldungen ist in den drei Ländern im internationalen Vergleich hoch. Allerdings hält sogar hier ein Trend Einzug, der Experten Sorgen macht: Unternehmen versuchen, selbst kleinste Veränderungen an altbekannten Produkten oder Dienstleistungen patentieren zu lassen und belasten die Patentämter mit Anträgen, die schließlich negativ beschieden werden. Marktbrechende Erfindungen hätten es in diesem Wust von Einreichungen entsprechend schwerer, sich abzuheben, wahre Innovationen würden behindert, kritisieren die Experten.


Kamen zwischen 1996 und 2000 noch 70 Prozent der Top-Patente, die das Europäische Patentamt vergab, aus den USA, Deutschland und Japan, so lag dieser Anteil fünf Jahre später bei nur noch 60 Prozent. Verantwortlich ist ein spürbarer Rückgang in den USA und Japan, während der Anteil deutscher Top-Patente stabil blieb. Dafür betreten China, Indien und Korea im Jahr 2000 die Bühne der besten Innovationen, auf der bis dahin nur westliche Länder gespielt hatten.



Allgemein ist die Qualität der Patentanträge dem Bericht zufolge seit 1990 jedoch um 20 Prozent gefallen. Im Schnitt wird nur jede vierte Anmeldung akzeptiert. Am höchsten ist die Vergabequote der in Europa geschützten Patente in relativ jungen Bereichen, wie zum Beispiel bei erneuerbaren Energien, Nanotechnologie und IT-Methoden. Deutschland ist bei Innovationen in der Solarenergie besonders stark.


Die größten Summen für Forschung und Entwicklung wenden noch immer die USA auf: 400 Milliarden US-Dollar investierte das Land im Jahr 2009 in seine wissenschaftliche und wirtschaftliche Wettbewerbsfähigkeit. China und Japan folgen mit knapp einem Drittel dieser Summe an Platz zwei und drei. Gemessen an der Wirtschaftskraft führen allerdings Finnland und Schweden mit Ausgaben von 4,0 beziehungsweise 3,6 Prozent ihres Bruttoinlandsproduktes.


Das OECD-Scoreboard für Wissenschaft, Technologie und Industrie verfolgt die globalen Trends in diesen Bereichen und versucht, sichtbar zu machen, wie sich einzelne Länder in der Wissensgesellschaft aufstellen. Der Bericht beruht auf 180 international vergleichbaren Indikatoren und liefert außerdem statistisches Material für wichtige Länder außerhalb der OECD: Brasilien, Indien, China und Russland.


Die Publikation steht auf der OECD iLibrary Website zur freien Verfügung. Einzelne Indikatoren können auch als PDF runtergeladen werden.


> zur Hauptseite “Science, Technology and Industry Scorebard 2011


Quelle: Pressemitteilung der OECD, 20.09.2011.