Potential for Frugal Innovation in a Brazilian Regional System: A Study Based on a Multicriteria Approach

Abstract

Regional innovation systems (RISs) can stimulate knowledge sharing and collaboration, attracting investments and promoting economic and social progress. This is often linked to what is known as frugal innovation, involving small businesses developing and selling sustainable, low-cost products that meet local needs. This study aims to present and apply a model to measure regional innovation potential, using a multicriteria approach based on the principles of frugal innovation (FI). The analytical hierarchical process (AHP) was used to generate factor weights, enabling score calculation to provide insights into FI potential on a literature-based five-point scale. Data were collected in two stages: (i) from twelve main participants—working in a rural RIS—who responded to a questionnaire, and (ii) from cities through official government channels to collect information about their innovation development initiatives. The results reveal that the RIS analyzed still lacks assistance in the development of public policies to support the development of an innovative culture, indicating the need for appropriate mechanisms to boost innovation actions. The outputs of this study can help cities and regions to analyze their innovation potential, assist public managers in decision-making, support the creation of innovation-stimulating mechanisms, help RISs to address deficiencies, and promote local development.

Keywords

• frugal innovation
• innovation potential
• rural regional innovation systems
• multicriteria analysis
• analytical hierarchy process (AHP)