That ‘something’ about India
Book Review: Our Frugal Future: Lessons from India’s Innovation System
NESTA, July 2012, pp.94, Downloadable from: www.nesta.org.uk
Western governments have always been intrigued by India, and with the global anticipation of further economic crisis and opportunity, are not less so now. Everything that is asserted about India is also provable in its direct opposite, therefore unravelling the mystery of India is never a finished effort. NESTA's research (NESTA is a London-based think tank) publication "Our Frugal Future: Lessons from India's Innovation System" is a follow-up on an excellent earlier exploration titled India: The Uneven Innovator (2007), in which the authors made the case against a simplistic or keyhole view of science & innovation in India. Both these studies are sponsored by the UK Foreign & Commonwealth Office (FCO), and we should expect more pathfinder studies to follow.
The authors say that institutional efforts towards innovation, especially government-sponsored efforts, although on the increase, remain inadequate; however, Indian innovation should also be measured by non-traditional metrics. They identify 'frugal innovation' as the key feature of the Indian innovation paradigm. Frugal innovation is being pursued in all sectors -- private, government and unorganised.
Frugal innovation is characterised by the search for fit for purpose, fit for purse solutions. 'Frugal' is a mind-set and can be applied in any setting - high tech or 'bullock-cart'. 'Jugaad' has been widely discussed as the precursor to 'frugal innovation'; as we all know it is the response of the underdog to high-price-tag innovation. It is the smart response of the less rich, who seek to achieve similar outcomes at a lower cost and minus the inessential frills. It is a survival mechanism in a highly competitive & cost-conscious environment where textbook procedures may be cumbersome and obstructive and need to be bent or reinvented and the players cannot wait for the administration to get its act together. At the end of the day, it is about being bold and entrepreneurial; it is about getting ‘more and more for less and less, for more and more people’. The 'Frugal' mentality in India is aided by a national culture of conservation, avoidance of waste and reverence for the environment.
The authors refer to more respectable intellectual traditions -- citing the influence of Schumacher's Small is Beautiful (1962), through Toyota's lean management (1980's), to Prahalad's Bottom of the Pyramid (2002). Frugal innovation is also seen as a notch above jugaad, a bolder and more assured approach towards problem-solving, less driven by constraints than by values.
In particular, the authors observe that the 'jugaad culture' is supported by the business ecosystem - the entrepreneurs, consumers and financial institutions in India. They ask -- could this approach be the silver bullet for a global economy characterised by shortages in the face of explosive demand? How can jugaad be scaled up, its principles leveraged on a global scale? If you have an idea on this -- there are folks in the UK FCO's innovation group who will be interested!
The authors note that frugal innovation is not only about products but also about business models and services. They cite well-known examples of low-cost heart surgeries and artificial limbs and less-known instances for example of community-supported geriatric care. Note however that these home-grown business models are built on market pull, delivering a product or service demanded by the market, versus pushing a completely new product onto the market. The authors do not analyse from this standpoint, although it would be interesting to know if this is a key differentiator of innovation -- as it is understood and pursued in India. Another interesting dichotomy is the use of 'frugal' as a defining characteristic of R&D policy in India, versus 'plentiful' as the defining R&D goal in the West. A vital difference in perspective?
The authors refer to the growing use of Indian technical knowledge workers via the setting up of global R&D centres by MNCs in India. Although this talent has become a ‘have to have’ for MNCs, the authors observe that it is not clear yet how these R&D centres impact innovation in India. However the authors do not analyse what potential impact these centres might have going forward as these skilled technology workers start migrating out of these high-tech centres and perhaps setting up their own.
The authors find that although Indian research publications have doubled over a decade, most of those publications are 'of below average quality'. 62% of the R&D spend is in defence, atomic energy and space research – from which documented examples of frugal innovation are not known. In contrast, pharma, an area abounding with examples, accounts for only 2%. Thus, non-formal, ground-up and enterprise-driven innovation system seems to score above the formal R&D system! Organised & self-conscious pursuit of frugal innovation in big industry and big science in India seems still to be limited to a handful of enterprising leaders.
The study provides a wealth of data on institutions, geographies and international collaboration, and interesting analytical appendices. Noteworthy is the bibliography of 324 referenced publications and the 150-odd named individuals from whom anecdotal data and opinions were sourced.
There is a race for strategic collaboration with India in innovation. There is also a race among investors peeling their eyes for the next black swan or golden goose. The study holds up the mirror to the innovation community in India and tells us something about what those in the race are looking for.
Published in Business Standard
Book Review: Our Frugal Future: Lessons from India’s Innovation System
NESTA, July 2012, pp.94, Downloadable from: www.nesta.org.uk
Western governments have always been intrigued by India, and with the global anticipation of further economic crisis and opportunity, are not less so now. Everything that is asserted about India is also provable in its direct opposite, therefore unravelling the mystery of India is never a finished effort. NESTA's research (NESTA is a London-based think tank) publication "Our Frugal Future: Lessons from India's Innovation System" is a follow-up on an excellent earlier exploration titled India: The Uneven Innovator (2007), in which the authors made the case against a simplistic or keyhole view of science & innovation in India. Both these studies are sponsored by the UK Foreign & Commonwealth Office (FCO), and we should expect more pathfinder studies to follow.
The authors say that institutional efforts towards innovation, especially government-sponsored efforts, although on the increase, remain inadequate; however, Indian innovation should also be measured by non-traditional metrics. They identify 'frugal innovation' as the key feature of the Indian innovation paradigm. Frugal innovation is being pursued in all sectors -- private, government and unorganised.
Frugal innovation is characterised by the search for fit for purpose, fit for purse solutions. 'Frugal' is a mind-set and can be applied in any setting - high tech or 'bullock-cart'. 'Jugaad' has been widely discussed as the precursor to 'frugal innovation'; as we all know it is the response of the underdog to high-price-tag innovation. It is the smart response of the less rich, who seek to achieve similar outcomes at a lower cost and minus the inessential frills. It is a survival mechanism in a highly competitive & cost-conscious environment where textbook procedures may be cumbersome and obstructive and need to be bent or reinvented and the players cannot wait for the administration to get its act together. At the end of the day, it is about being bold and entrepreneurial; it is about getting ‘more and more for less and less, for more and more people’. The 'Frugal' mentality in India is aided by a national culture of conservation, avoidance of waste and reverence for the environment.
The authors refer to more respectable intellectual traditions -- citing the influence of Schumacher's Small is Beautiful (1962), through Toyota's lean management (1980's), to Prahalad's Bottom of the Pyramid (2002). Frugal innovation is also seen as a notch above jugaad, a bolder and more assured approach towards problem-solving, less driven by constraints than by values.
In particular, the authors observe that the 'jugaad culture' is supported by the business ecosystem - the entrepreneurs, consumers and financial institutions in India. They ask -- could this approach be the silver bullet for a global economy characterised by shortages in the face of explosive demand? How can jugaad be scaled up, its principles leveraged on a global scale? If you have an idea on this -- there are folks in the UK FCO's innovation group who will be interested!
The authors note that frugal innovation is not only about products but also about business models and services. They cite well-known examples of low-cost heart surgeries and artificial limbs and less-known instances for example of community-supported geriatric care. Note however that these home-grown business models are built on market pull, delivering a product or service demanded by the market, versus pushing a completely new product onto the market. The authors do not analyse from this standpoint, although it would be interesting to know if this is a key differentiator of innovation -- as it is understood and pursued in India. Another interesting dichotomy is the use of 'frugal' as a defining characteristic of R&D policy in India, versus 'plentiful' as the defining R&D goal in the West. A vital difference in perspective?
The authors refer to the growing use of Indian technical knowledge workers via the setting up of global R&D centres by MNCs in India. Although this talent has become a ‘have to have’ for MNCs, the authors observe that it is not clear yet how these R&D centres impact innovation in India. However the authors do not analyse what potential impact these centres might have going forward as these skilled technology workers start migrating out of these high-tech centres and perhaps setting up their own.
The authors find that although Indian research publications have doubled over a decade, most of those publications are 'of below average quality'. 62% of the R&D spend is in defence, atomic energy and space research – from which documented examples of frugal innovation are not known. In contrast, pharma, an area abounding with examples, accounts for only 2%. Thus, non-formal, ground-up and enterprise-driven innovation system seems to score above the formal R&D system! Organised & self-conscious pursuit of frugal innovation in big industry and big science in India seems still to be limited to a handful of enterprising leaders.
The study provides a wealth of data on institutions, geographies and international collaboration, and interesting analytical appendices. Noteworthy is the bibliography of 324 referenced publications and the 150-odd named individuals from whom anecdotal data and opinions were sourced.
There is a race for strategic collaboration with India in innovation. There is also a race among investors peeling their eyes for the next black swan or golden goose. The study holds up the mirror to the innovation community in India and tells us something about what those in the race are looking for.
Published in Business Standard
