Research in the International Journal of Entrepreneurial Venturing has looked at the dynamics of affordable innovations and investments and shed light on the role played by products and services designed for economically constrained consumers. The research shows that contrary to a popular misconception that many innovations in this area are low-tech, they can encompass complex, tailored solutions addressing the specific needs of people of limited financial means.
Nadine Gurtner and Sebastian Gurtner of Bern University of Applied Sciences in Switzerland and Ariane Segelitz-Karsten of the Friedrich Schiller University Jena in Germany distinguished between affordable and premium innovators in their study. The new work challenges previous studies that identified general drivers for innovative behaviour and instead emphasizes the need to recognize the unique factors that influence different types of innovation. The findings offer new insights for the innovating companies themselves, policymakers, and society in general.
The team has focused on innovations such as “OneDollarGlasses”. This device can produce lenses for spectacles at a cost of just one dollar. Such an innovation offers individuals in developing countries an opportunity to make a living selling such spectacles even to those in poverty. In a slightly different vein, General Electric’s VScan, a portable medical ultrasound machine, stands out as an example of affordable innovation, offering a cost-effective alternative to conventional medical equipment for cash-strapped hospitals and maternity units.
The research highlights the various drivers for affordable and premium innovators and emphasizes the pivotal role of individual commitment in shaping the course of innovation. Such insights could guide companies hoping to innovate and help them find the appropriate personnel present within their organisations or to hire the right people from outside.
From the point of view of society, the research also underscores how fostering innovation is important. While what we might refer to as premium innovations address certain challenges, affordable innovations are often more desirable and perhaps even essential in helping low-income populations. Policymakers could lubricate the machinery of innovation through specific, targeted actions, such as awards recognizing successful endeavours. This would not only boost the value to society but encourage individuals to actively participate in developing the very solutions that will benefit those in the most need.
Gurtner, N., Segelitz-Karsten, A., Reinhardt, R. and Gurtner, S. (2023) ‘Affordable or premium innovation? The influence of individual and contextual factors on innovators’ engagement in different innovation types’, Int. J. Entrepreneurial Venturing, Vol. 15, No. 5, pp.468–506.