A look back at the discussion between the Circulab team and Navi Radjou.
At a time when material abundance still characterizes many developed economies, the issue of innovation can no longer be separated from that of resources. During his meeting with the team on Radio Circulab, Navi Radjou — a renowned theorist of frugal innovation — shared an inspiring vision: to produce and consume better, with less.
A philosophy born of scarcity… and ingenuity
Originally from Pondicherry, India, Navi Radjou grew up in an environment where scarcity naturally shaped behavior. Water was precious, nothing was thrown away, bulk purchases were the norm, and sharing with neighbors was part of daily life. Long before the ideas of the circular economy or sharing became trendy concepts, they were already a lived reality.
It was in this context that his sensitivity to frugal innovation was born: a way of innovating that relies not on an abundance of resources, but on the intelligent optimization of available resources. The idea is not deprivation, but creative efficiency: “doing more with less”.
Recreating constraints to foster innovation
In societies of abundance, the challenge paradoxically lies in the absence of constraints. To address this, Navi Radjou suggests deliberately recreating positive limits. For example, imposing a tight budget on a team of engineers to design a product will necessarily force them to rethink the entire creative process. This challenge was notably set by Renault’s CEO for his teams in 1999: to produce a car for less than 5,000 euros. The goal was achieved, leading to the launch of the Logan.
This approach is part of the Jugaad philosophy, a Hindi term referring to a form of creative resilience. Very prevalent in emerging countries, this mindset involves turning scarcity into a driver of innovation. Entrepreneurs in Africa and South America are thus developing ingenious solutions with limited and circular resources: low-cost incubators for premature babies, refrigerators made of clay that require no electricity, and even bicycles capable of generating energy while climbing hills.
The key lesson is simple: don’t complain about scarcity, but use it as a springboard to devise relevant and sustainable solutions. Although complaining is the “French national pastime” as the Franco-Indian wryly notes, he assures us that this approach is possible, especially in a country like France where wealth and common sense abound.
Towards a triple regeneration: self, society and nature
According to him, the current imbalance stems from the fact that our societies take more from nature than they give back. Frugal innovation must therefore be part of a framework of triple regeneration:
- individual (refocusing and establishing healthy boundaries),
- societal (fostering cooperation rather than competition),
- environmental (restoring balance with nature).
For Navi, regeneration begins on a personal level. He compares this dynamic to nature itself: winter, when trees are bare of leaves and fruit, may seem like a time of loss. Yet it is actually a circular process of regeneration. In the same way, our individual systems (our bodies) and economic systems (our society) must embrace periods of simplicity in order to better renew themselves.
Rethink the entire value chain
While companies’ adoption of circularity principles is an encouraging step forward, it remains insufficient if it applies only to part of the system. Indeed, approximately 70 % of large corporations’ operations are subcontracted. Frugal innovation therefore requires rethinking the entire value chain, including relationships with suppliers.
A striking example is Jaguar Land Rover, which collects aluminum scrap from its factories to resell it to its suppliers, who then reintegrate it into their production for the brand. This circular model radically transforms industrial relationships.
Another crucial point: nearly 80 % of a product’s lifecycle costs — particularly environmental costs — are determined as early as the R&D phase. Yet research teams still engage too rarely with suppliers, as communication is often filtered through sales departments. For Navi Radjou, procurement departments must evolve toward a more strategic and collaborative role.
Evolution rather than revolution
For Navi Radjou, the goal is not to abruptly disrupt the current economic system, but to evolve it gradually. The 20th century was marked by Taylorism and globalization, but also by a growing reliance on large external consulting firms — a sign of a lack of internal confidence within companies. In contrast, frugal innovation harnesses the collective intelligence of employees and their ecosystem. Since every organization is unique, there is no one-size-fits-all model: tools must be tailored to the culture, industry, and specific realities of each company.
This is also what we develop at Circulab: collective intelligence workshops that leverage our tools (such as the Partner Map or the Value Chain Canvas) to foster co-creation and bring circular business models to life.
Learn more
To listen to the full conversation between Justine and Navi, check out Radio Circulab’s podcast, available on all streaming platforms!
To explore the topic further, Navi Radjou has published Frugal Economy: Building a Better World with Less (Pearson) and Jugaad Innovation: Let’s Get Ingenious Again! (Diateino).
