Firms are often criticized for their reluctance to embrace sustainability in their business strategies. Frugal innovation is a recent concept that represents a new way for firms to serve underserved customers in developing countries while also promoting sustainability. Based on three cases of frugal innovation at the grassroots level in India, this article demonstrates how frugal innovation presents a promising way to tackle some of today's pressing societal problems with new business models. We use a range of parameters for economic, social, and environmental sustainability to strengthen the case for frugal innovation. This article attempts to inspire scholars to consider frugal innovation further in their future research endeavors and encourage firms to integrate it into their existing business models.

The bottom of the pyramid (BoP) consists of 1.4 billion people living less than 1.25 USD per day. Fulfilling unmet needs of BoP people involves the design of products as a main activity. Designing products for the BoP faces two main problems. First, there is a general lack of understanding of the needs of users and second, traditional design methods may be limited in addressing the BoP context. Frugal innovation is positioned as a very interesting approach with the potential to adequately respond to the design challenges of the products for the BoP. However, studies in engineering design based on frugal innovation are still limited. In response to these issues, through an analysis and review of the literature, an exploratory mapping of the proposals in frugal innovation and the characteristics of the BoP was conducted. On the basis of the results, this paper defines a set of eight frugal criteria design and an identification of three dimensions that characterize a BoP context and two roles of BoP people. Finally, an association of BoP dimensions and roles with the key criteria of frugal design is proposed.