Conceptualizing Data-Driven Frugal Innovation: A Case from the Philippines

Frugal innovation presents a compelling strategy for tackling socio-economic challenges in emerging economies. Characterized by its focus on cost-effectiveness and resource efficiency, frugal innovation has yielded practical, affordable, and environmentally sustainable solutions for underserved populations. However, integrating data-driven methodologies within this paradigm holds significant potential for further advancement. This research paper aims to understand the data-driven frugal innovation (DDFI) concept by exploring its emergence, challenges, and implications to inform policy and practice in pursuing impactful and sustainable development. The study developed a theoretical framework based on insights from DDFI publications that became the foundation for investigating a case of DDFI in the Philippines. The results of 21 surveyed DDFI innovators indicate the presence of a significant institutional void (e.g., market gap, lack of service arrangements, or absence of relevant regulations), where data can offer substantial benefits, is a primary consideration for developing DDFI. Beyond this void, innovator expertise, access to funding and technology, effective partnerships across diverse stakeholders, and transparent development processes emerge as critical factors driving DDFI development. Notably, the findings reveal that frugality in terms of data, technology, and funding does not hinder development.