Relevance of Jugaad and Catalytic innovation in developing world

Wilson Moras
1816236
CIM - 2

Jugaad innovation is doing more with less. It is a breakthrough growth strategy. It is finding new
uses to everyday objects. It is a Hindi world that describes an improvised or makeshift solution
using scarce resources. It is a frugal, flexible and inclusive approach to problem solving and
innovation. Jugaad thinking helps us to focus on the essence, the real requirement and often
leads to taking the mental leap that is required for a disruptive new design and product. Here
are customers are not viewed a passive users of product and services. It recognizes their need
and solution are arrived from the ground by working closely with marginal groups to identify their
unique needs. It makes problem solution affordable, accessible and sustainable.

Jugaad innovation is very much need of the hour to the Indian market. It is said that 40% of
Indians have no access to financial services are outside the electricity and costly health care
reach. So it makes since to create solution that are frugal, highly affordable and not heavily
resource dependent. This kind of innovation involves who are outside the formal economy. It
offers opportunities for local entrepreneurs, to have a deep understanding of the local context
and therefore come up with ingenious solution to the problem faced my majority of Indians. It is
becoming more important in the west too where they face extreme scarcity of resources. It is
also plays important part in changing of demographic shift, technology shifts and many other
variables. In this situation for investment in R&D will not solution rather something that is frugal
and more flexible and more inclusive is solution to the problems. Jugaad is predominantly
practiced by small enterprises because of the lack of resources they have as well as grassroots
entrepreneurs who are trying to deal with various socio-economic problems. Young innovators
and small entrepreneurs actually use Jugaad as a way of surviving. Large companies may not feel
the need but slowdown of economy has forced them to embrace Jugaad.

Eg: Embrace – a portable infant warmer which is a baby incubator. This is cost effective when
compared to fixed incubator. Renault and Nissan embraced this idea to come up with lost cost
cars.

Catalytic Innovation

Catalytic innovation is an innovation for social change. It challenge organizations by offering

simpler, good-enough solutions aimed at un-served groups. Catalytic innovation shares the same
traits as disruptive innovative but focuses more on social change.

Eg. Aravind Eye Care Hospital It is also in institute for research that contributes to the
development of eye care and train health-related and managerial personnel in the development
and implementation of efficient and sustainable eye care programs.

Hence, the catalytic innovation is the need of the hours in the emerging economies where
majority of the population can afford the innovation and make their life simple better. Catalytic
innovation can be easily accessible by the poor of the country so that they are not left out in the
growing changes in the economy. The government need to reach and harness the human and
financial capital necessary to spur innovation that will bring about a social change where the
marginalized and downtrodden too become utilizers of innovation. The government should focus
on inclusive development and uplift the downtrodden of the society thought innovation.
Catalytic innovation is way in which the government can bring about a change in the lives of the
people.