A Review on “Is Frugal Innovation Driving the Sharing Economy?”

The emergence of the sharing economy has altered how individuals get products and services, prioritizing collaborative consumption and resource sharing above ownership. In our day and age, frugal innovation and the sharing economy are two economic trends that prioritize accessibility, resource efficiency, and sustainability. Frugal innovation, defined as the development of low-cost, resource-efficient solutions, is consistent with the ideals of the sharing economy by increasing service accessibility, particularly in resource-constrained situations, and encouraging resource optimization. This study investigates whether frugal innovation actively fosters the sharing economy, using secondary data, such as case studies, academic literature, and industry analysis. The findings show that frugal innovation promotes the expansion of the sharing economy by lowering entry prices, increasing inclusiveness, and encouraging sustainable consumption. Furthermore, utilizing case studies and current literature, this study investigates the relationship between the sharing economy and frugal innovation concentrating on the implications for economic inclusion, environmental sustainability, and social equality. However, this partnership is not without its obstacles, notably in terms of regulatory compliance and scalability.