Frugal Innovation from the Bottom Up

             We need to start paying attention to reverse innovation. We are starting to observe emerging economies with innovative products. We often think of ways to address issues development countries are facing by designing a product that can be used in those countries. People often invest large sums of money and time in developed state trying to advance a design or product that meets the needs of those in the bottom of the economic pyramid. But who says innovations won't take place in nations with developing economies and that those innovations could will transfer to developed nations?

            As Nicholas Nehamas points out in his article "Looking for New Ideas? Get Yourself to the Developing World," we are seeing a trend of Western companies rolling out products in poorer nations with emerging economies. It is expected that by 2030, 90% of the middle-class will be expected to be in emerging markets. Considering these trends, a company can be profitable and also address the needs of those in the bottom of the economic pyramid by creating products to suit the needs of those in poorer nations instead of taking out components of a product designed for customers in developed nations to make it more affordable for those in emerging economies.

           Businesses and people need to change their mindset to think that innovations can take place at the bottom of the economic pyramid. In the article for class by Saswato R. Das, it was mentioned that India is trying to develop a handheld computer that will only cost $35. And the article by Andy Greenber, "The Prophet of Cheap" shows how a low-cost product can have a dramatic impact on the market. If we are trying to address the needs of those in developing nations, it might be easier to base ourselves in those countries, study the resources there, and work with what is available there. 

          Nicholas Negroponte was able to create downward pressure on the computer market with his low- cost tablet PC for poor schoolchildren. Innovations like those that occurred in India such as the development of a 7-pound heart rate monitor will have a big impact on the global market. And these innovations could transfer from emerging markets to the developed world. Should we start investing in these emerging markets to drive down prices on products in the global market? Could driving down prices on certain products have negative impact on certain industries and the labor market?