How industrial clusters can foster frugal digital innovation: A theoretical perspective

Abstract

This article presents a theoretical exploration of the role industrial clusters can play in fostering frugal digital innovation particularly, in the Moroccan context. This theoretical analysis incorporates porter cluster theory (Porter, M.E. 1990) with the principles of frugal innovation as introduced by (Radjou and Prabhu 2015), along with institutional and Resource Based perspectives (Dimaggio & Powell, 1983; North, 1990). This study demonstrates how spatial and relational interactions present in clusters, such as proximity, trust, and shared learning, can help alleviate challenges in creating affordable and sustainable digital solutions. A conceptual framework is outlined, highlighting three primary mechanisms: Shared infrastructure, collective capacity building, and market orientation. Frugal innovation is described here as the creation or modification of simple, efficient, and accessible technologies that engage with local needs while minimizing resource utilization. Although this work seeks to further the theoretical understanding of accessible and cost-effective digital transitions in  environments with limited resources, this review also considers how clusters may serve to support firms in preserving competitiveness while handling digital challenges, especially in relation to those with traditional resource based advantages. This contribution is exploratory in nature and attempts to encourage further academic  interest in the potential of clusters as a foundation for frugal, collaborative, and sustainable innovation strategies.

Classification JEL: O32, O33

Paper type : Theoretical research