Frugal Innovation in Africa Presentation INNOFRUGAL 2015 Helsinki, April 17 th 2015

1. Centre for Frugal Innovation in Africa 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)

2. Centre for Frugal Innovation in Africa Frugal Innovation in Africa Background Leiden-Delft-Erasmus strategic alliance: 8 new research centres to demonstrate synergies

3. Centre for Frugal Innovation in Africa Frugal Innovation in Africa Website: www.cfia.nl Facebook page: Centre for Frugal Innovation in Africa Twitter: @frugalafrica

4. 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

5. Frugal Innovations in Africa:Advanced and contested elements of a definition Locally produced briquetting machine, Mali • 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 Centre for Frugal Innovation in Africa

6. Centre for Frugal Innovation in Africa Frugal Innovation in Africa • Kind of Innovation • Cost Innovations: same functionality at lower cost • Good-Enough Innovations: tailored functionality at lower costs • Frugal Innovations: new functionality at low costs • Reverse Innovations: selling low-cost innovations • originally developed for emerging • markets, elsewhere Based on: Zeschky et.al (2014)

7. Centre for Frugal Innovation in Africa Frugal Innovation in Africa Cost Innovation Good Enough Innovation

8. Centre for Frugal Innovation in Africa Frugal Innovation in Africa Frugal Innovation Reverse Innovation

9. Frugal Innovations in Africa: multi-disciplinary focus Frugal Thermometer: • robust, easy touse • 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 • Leiden: medicalanthropology, Africaknow-how, history, law (IPR) • Delft: engineering, design, innovation management/ entrepreneurship, ethics • Erasmus: inclusive business models, entrepreneurship, localeconomicdevelopment Centre for Frugal Innovation in Africa

10. Centre for Frugal Innovation in Africa Frugal Innovation in Africa TAHMO Weather station (TU Delft Water Management)

11. Core question & challenge Under whichconditions are frugalinnovations more developmentalandhowtoincreasethatlikelihood? Move beyond case studies anddevelop more systematicanalyticalframeworks, alsotostrengthendevelopmentaland policy relevance. funding as first step: framework on howandwhento most effectivelyintegrateethical & developmentaldimensions in product developmentand business model. Centre for Frugal Innovation in Africa

12. Centre for Frugal Innovation in Africa Frugal Innovation in Africa Philips Africa Innovation Hub Nairobi: Community Life Centers (CLCs)

13. 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)?

14. Centre for Frugal Innovation in Africa Frugal Innovation in Africa • How to bring in inclusiveness? • Local Economic conditions included • by means of • 2. Local Entrepreneurship

15. Local Economic Development • Low-income customers demand new products, services and systems addressing specific constraints in local economy (M-Pesa) • 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

16. Centre for Frugal Innovation in Africa • Advantages of local entrepreneur-ship in polycentric business models • Distribution channel rolling out innovations to local communities, particularly relevant in remote areas. • Important sources of local user values and hence important as (co-) innovators providing new ideas and values in innovation process.

17. Centre for Frugal Innovation in Africa Frugal Innovations in Africa: Some National Links • The Partnerships Resource Center, Erasmus University Rotterdam • BoPInnovation Center, Utrecht • Dutch Ministry of Foreign Affairs: International Cooperation • The Netherlands Organization for Scientific Research

18. 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

19. Centre for Frugal Innovation in Africa Frugal Innovation in Africa Thank you