Study on Mapping and Scoping of Frugal and Reverse Innovation in Europe

The Council Conclusions on the New European Innovation Agenda1,2 emphasised that innovation, in its broader sense, including societal, social, cultural and public sector innovation, is an essential enabler for achieving the Union’s policy objectives, in particular the green transition and digital transformation, as well as the Sustainable Development Goals. The key findings of the study suggest that frugal and reverse innovation can support these objectives, particularly as they relate to green, sustainable, and socially driven transformation. This study, under the European Innovation Ecosystems part of Horizon Europe, provides an overview of frugal and reverse innovation in the European Union and Horizon Europe Associated Countries concerning their challenges and opportunities and proposes definitions of these concepts. The findings of the study suggest that tackling social challenges within the EU presents an ideal opportunity for frugal and reverse innovations, as these approaches can effectively overcome the obstacles encountered in traditional profit-driven markets. Frugal and reverse innovations present opportunities to meet the growing demand for affordable and accessible solutions in the EU and Horizon Europe Associated Countries. They can promote a bottom-up innovation ecosystem which strengthens sustainable supply chains and community-driven solutions, contributing to the EU’s sustainability agenda and its autonomy and resilience in the face of growing emerging market competition, particularly in key sectors such as green and health technologies. This study provides specific policy recommendations for policy makers to raise awareness of frugal concepts in policy, ensure inclusive policy instruments, explore international best practices and monitor the frugal and reverse innovation landscape to identify future opportunities.