The democratizing effects of frugal innovation: Implications for inclusive growth and state-building

The aim of this paper is to examine the impact of frugal innovation in the fields of livelihood provision, education, infrastructure, and distribution networks on state-building in countries where a significant proportion of the population lives at the base of the pyramid (BoP).

The paper reviews the literature on frugal innovation, democratization and state-building, offers practical examples in support of the conceptual arguments, and provides research propositions for empirical assessment.

The paper provides support for the notion that the creation of more inclusive markets through frugal innovation contributes to socio-economic development, which in turn strengthens democratization and state-building.

Multinational corporations can have a positive impact on democratization by offering for-profit products and services to serve BoP markets.

The paper provides novel insights into the role that frugal innovation plays in state-building and democratization.