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

Purpose – 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). Design/methodology/approach – 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. Findings – 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. Practical implications – Multinational corporations can have a positive impact on democratization by offering for-profit products and services to serve BoP markets. Originality/value – The paper provides novel insights into the role that frugal innovation plays in state-building and democratization.