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Necessity is the mother of invention - and India has proved it
By Ni Tao |
July 18, 2012, Wednesday
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Print Edition
Print Edition
WHEN it comes to innovation, the picture that usually comes to mind is one of men and women in white coats holding test tubes and doing experiments in a neatly arranged laboratory, complete with cutting-edge technology.
This type of "lab innovation" is less the norm in some parts of the developing world, where innovation occurs in such seemingly unlikely places as mud-walled and tin-roofed shacks in, say, an Indian village.
Dr Shashi Tharoor's commentary on India's thriving "frugal dynamism" opens our eyes to forms of innovation that would perhaps draw a snort of derision from smug, priggish inventors.
But in a country of contrasts - where economic growth is among the fastest in the world yet millions are still living in poverty - India's frugal innovation offers cost-effective possibilities for the poorest of the poor to enjoy the benefits of modernity. In an earlier article, Tharoor wrote about India's fast-growing mobile phone market. Models available in India are stripped down to their bare essentials, with no frills one can find on cell phones sold elsewhere in the world.
Out of reach
Western companies often find it hard to make inroads in the Indian market. A major reason is that their products are priced out of reach of most Indians or aren't tailored to the modest needs of local consumers. It is thus those firms that trim the pomp of their products to the fullest extent that will succeed.
For instance, G'Five, a Chinese cell phone maker, has the largest market share of 21 percent in India, with Nokia trailing far behind at 13 percent. G'Five's eccentric design caters to the Indian poor: dual batteries so that one can work if the other is down. The design is inspired by the fact that India is short of electricity. A common scene in India is people queuing up to charge their phones from a car battery.
India's somewhat "raw" innovation may appear insignificant, primitive, and it is unimaginable that the ideas that have inspired the birth of the Tata Nano, a typical Indian "industrial miracle," can be universally applied. But they do contain sparkles of wisdom that could enlighten the world with ways to ease the current recession.
In the face of sluggish demand, Western firms have been fervently tapping the emerging markets, with some success in China, but perhaps less luck in India. Some haven't realized that a few dollars in profits multiplied five million times are good money to earn. What it entails for companies to succeed, as G'Five has, is to outwit the Indians in the sort of innovation previously beyond their wildest imagination.
More with less
And India's frugal innovation has more to offer than just business lessons. It can be a gospel for the world economy and environment. When the current round of belt-tightening forces people to skip big-ticket purchases like gas guzzlers and luxury goods, we are encouraged to explore less costly substitutes, and in Tharoor's words, do more with less. This could be a relief for those worried about the planet's depleting resources.
China is no stranger to the frugal conceptions of its neighbor. In effect, recent history is full of cases of Chinese ingenuity in coping with scarcity. In the 1970s in Shanghai, for instance, people improvised "fake collars," pieces of cloth worn under sweaters, to give the false impression of wide wardrobe choices. Like the "missed call" function mentioned in Tharoor's piece, the fake collars were inventions of a certain period, not designed to last when living standards improve. Yet they prove innovation doesn't have to carry glamour as we know it.
Innovation isn't confined to labs, or hothouses like Bill Gates' home garage where Microsoft was born. It permeates every facet of daily life.
While many observers bemoan the lack of innovative spirit in China, India's experience shows innovation is always there. What we lack is an eye and imagination for it.
This type of "lab innovation" is less the norm in some parts of the developing world, where innovation occurs in such seemingly unlikely places as mud-walled and tin-roofed shacks in, say, an Indian village.
Dr Shashi Tharoor's commentary on India's thriving "frugal dynamism" opens our eyes to forms of innovation that would perhaps draw a snort of derision from smug, priggish inventors.
But in a country of contrasts - where economic growth is among the fastest in the world yet millions are still living in poverty - India's frugal innovation offers cost-effective possibilities for the poorest of the poor to enjoy the benefits of modernity. In an earlier article, Tharoor wrote about India's fast-growing mobile phone market. Models available in India are stripped down to their bare essentials, with no frills one can find on cell phones sold elsewhere in the world.
Out of reach
Western companies often find it hard to make inroads in the Indian market. A major reason is that their products are priced out of reach of most Indians or aren't tailored to the modest needs of local consumers. It is thus those firms that trim the pomp of their products to the fullest extent that will succeed.
For instance, G'Five, a Chinese cell phone maker, has the largest market share of 21 percent in India, with Nokia trailing far behind at 13 percent. G'Five's eccentric design caters to the Indian poor: dual batteries so that one can work if the other is down. The design is inspired by the fact that India is short of electricity. A common scene in India is people queuing up to charge their phones from a car battery.
India's somewhat "raw" innovation may appear insignificant, primitive, and it is unimaginable that the ideas that have inspired the birth of the Tata Nano, a typical Indian "industrial miracle," can be universally applied. But they do contain sparkles of wisdom that could enlighten the world with ways to ease the current recession.
In the face of sluggish demand, Western firms have been fervently tapping the emerging markets, with some success in China, but perhaps less luck in India. Some haven't realized that a few dollars in profits multiplied five million times are good money to earn. What it entails for companies to succeed, as G'Five has, is to outwit the Indians in the sort of innovation previously beyond their wildest imagination.
More with less
And India's frugal innovation has more to offer than just business lessons. It can be a gospel for the world economy and environment. When the current round of belt-tightening forces people to skip big-ticket purchases like gas guzzlers and luxury goods, we are encouraged to explore less costly substitutes, and in Tharoor's words, do more with less. This could be a relief for those worried about the planet's depleting resources.
China is no stranger to the frugal conceptions of its neighbor. In effect, recent history is full of cases of Chinese ingenuity in coping with scarcity. In the 1970s in Shanghai, for instance, people improvised "fake collars," pieces of cloth worn under sweaters, to give the false impression of wide wardrobe choices. Like the "missed call" function mentioned in Tharoor's piece, the fake collars were inventions of a certain period, not designed to last when living standards improve. Yet they prove innovation doesn't have to carry glamour as we know it.
Innovation isn't confined to labs, or hothouses like Bill Gates' home garage where Microsoft was born. It permeates every facet of daily life.
While many observers bemoan the lack of innovative spirit in China, India's experience shows innovation is always there. What we lack is an eye and imagination for it.
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