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The food processing industry in India is a sunrise industry, which has been growing above-average and is expected to grow further. Even though India has a large agricultural sector, the food processing industry has traditionally played a small role and it is only recently that it has been promoted as a measure to increase food security and generate employment. Germany's food processing industry is a well-developed industry that is globally competitive. Nevertheless, it is faced with saturation in the domestic market, as far as conventional foods are concerned. Emerging, significant trends in Germany are health and wellness-enhancing and disease-preventing food products that are often organically produced, procured through fair trade and are increasingly plant-based (vegetarian/vegan), which coincides with the increasing popularity of Ayurveda and Yoga. These trends can be seen as areas where India has been traditionally strong. The two countries, thus, have enormous opportunities to collaborate. While German firms can participate in the growing market of India, Indian firms can benefit from the emerging trends in Germany, which play to India's deep-rooted advantages. Indian companies can also benefit from the vocational trainings and other skill development programmes well-entrenched in the German food processing industry. In addition, India and Germany can engage in collaborative technology development efforts to develop frugal innovations in the food processing industry and in related sectors such as food processing and packaging equipment. Indo-German collaboration in the food processing industry has benefits that go well beyond the geographic limits of the two nations. The joining of forces can enhance the sustainability of the global food security and contribute to the fight against global food wastage & loss, hunger and poverty.

India has emerged as a vibrant and versatile source for cost effective, "disruptive innovations" of various varieties. Price-sensitive consumers in a large and growing market keep inducing firms to apply "frugal engineering" for creating affordable products and services without compromising excessively on quality. Because, as The Economist asserts: "Frugal does not mean second-rate". Such innovations are characterized by high affordability, robustness, and "good enough" quality in a volume-driven market. Resource constraints motivate firms and entrepreneurs to think out-of-the-box. The trick lies in creating solutions that are able to circumvent given environmental constraints in a cost effective way. India's large and enormously young population faced with limited budgets, but well-endowed with high aspirations, provides an ideal experiment ground for many firms. Solutions created for the Indian market are often suitable for other developing countries in Asia, Africa and Latin America that frequently face similar socio-economic conditions. In some instances they succeed even in developed country markets by enabling significant cost reductions. This emergence as a hub for "frugal innovations" possibly suggests a "lead market" role for India. On the other hand, lead markets, as understood today, are characterized by high per capita income, great customer sophistication and high quality infrastructure. Such assumptions imply that lead markets, almost by default, can only exist in economically developed countries because only they can finance the development effort. Using two anchor-cases of product innovations aimed at price-sensitive segments in India we generate preliminary evidence to challenge some of the core assumptions of the "lead market" theory and propose that lead markets can emerge in developing countries too because market attractiveness (e.g. volume of demand, export possibilities) and technological capabilities are able to offset many other deficiencies. The supposed absence of customer sophistication is channelized into a challenge for supplier-side sophistication to design cost effective, "good enough" solutions ("low-cost, thin-margin") that can meet the aspirations of consumers in a highly competitive market. In order to master this challenge companies need access to a competent and sufficiently large technical base with first-hand knowledge of the ground situation of targeted customer groups ("social capital"). -- Lead Markets ; Frugal Innovations ; India ; Globalization of Innovation ; Internationalization of R&D

This study builds on our previous work, which had questioned the validity of certain assumptions of the lead market theory in the face of changing ground realities in a globalized world. Sustained economic growth and proven technological capabilities in some "emerging economies" like China and India call for a reassessment of the appropriateness of the "conventional wisdom" that had held true until recently. While our previous study had "re-built" a theoretical background of the lead market model by introducing new elements, and doing away with certain others, with the help of two in-depth case studies; the purpose of the present study is to specifically assess India's potential as a lead market for cost-effective frugal innovations. The study crystallizes the inherent characteristics of frugal innovations, their development process and market success in the domestic and overseas markets by analyzing four successful product innovations from selected industries in India. The factors identified thus are then incorporated in the theoretic model to derive propositions about India's lead market potential. Whereas affordability and economies of scale have traditionally constituted the primary concern for frugal innovations, an increasing shift towards "value proposition" is identified. Intensifying competition and growing customer aspirations are changing the nature of frugal innovations. The hitherto unserved customer demands attractive designs and modern technologies to come out of his shell of "non-consumption". Our research confirms that frugal innovations can benefit end-consumers and firms, simultaneously. Better-designed products also have positive impact on the lead market potential, creating a virtuous cycle. The study also discovered that the increasing need for sophistication coupled with continued cost pressures is shifting the product development processes into the domain of "open global innovation", which also helps reduce the negative country-of-origin effects faced by developing countries. The research would have implications for location decisions in setting up global innovation/R&D activities.

Access to "lead markets" is generally regarded as an important driver of the increasing globalization of innovation since these are considered to be early indicators for emerging customer needs. They are traditionally thought to exist in economies with high per capita income, sophisticated markets and high international visibility. We, however, propose that there is an increasing evidence of lead market tendencies in some emerging economies, e.g. India. We undertake a literature review to crystallize the need for an update/extension of the existing model to better reflect the changed ground realities and propose that factors such as voluminous markets, strong technological capabilities, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies of developing economies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid, worldwide. -- Lead Markets ; India ; Globalization of Innovation ; Internationalization of R&D ; Frugal Innovations

The impressive and sustained growth of India's automobile industry in recent years has catapulted it into the league of the world's top-seven producers of four-wheelers. In the past decade, its exports have surged more than 25 percent a year on average. The turning point was arguably the 1991 policy of economic liberalization, but the impact of the reforms might have been subdued, if the Government of India had not played a pivotal role in the industry's evolution. This apparent "paradox" may be the key to understanding why the industry has adjusted so quickly to globalization, even though economic reforms began relatively late. This study identifies the main thrusts of policy regimes for the automobile sector since 1947, which began in an overregulation mode in the early period of independence. Nonetheless, the government consciously attempted to create and sustain favorable "innovation systems" at national, regional, and sectoral levels. Especially since 1991, many policy initiatives have benefited the industry and helped it reach the growth path it is following today.

Securing access to "lead markets" is generally regarded as a key driver for the increasing globalization of innovation since these are considered to be "early indicators" for emerging customer needs. Such markets, therefore, offer a good chance of uncertainty reduction for in the innovation process of firms. Lead markets are generally defined in terms of product segments within national boundaries and are thought to exist in economies with high per capita income, highly sophisticated markets and high international visibility. We argue that there is increasing evidence of lead market tendencies in certain emerging economies, e.g. India. Both domestic and foreign-owned firms there, in recent years, have produced several internationally acclaimed "frugal innovations" such as the Tata Nano or GE's handheld ECG machine Mac400. Using several examples we demonstrate that India seems to have emerged as a global hub for low-cost, frugal innovations. In this paper, we seek to crystallize the role of lead markets in globalization of R&D and identify the need for an update/extension to better reflect the changed ground realities. On the basis of emerging evidence we propose that sustained economic growth, voluminous markets, strong domestic technological capabilities, presence of foreign-owned R&D, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid worldwide. -- globalization of innovation ; lead markets ; internationalization of R&D ; frugal innovations ; bottom of the pyramid

Indian firms lead the pack of emerging market investors in Germany, with about 188 subsidiaries providing employment to close to 23,500 people. This article provides an update on trends in Indian investment in Germany and examines the performance of Indian subsidiaries.

Innovations have acquired a key-role in the growth and competition strategies of firms in today's globalized world. Governments in many, in developed as well as in developing, countries recognize the need to promote innovations and fund innovative projects; particularly those carried out in cooperation with other public sector institutions such as universities and specialized R&D institutions. This public-private partnership seems particularly useful in the early phases of innovation. This article discusses how the cooperation between the industry, the academia and the government may be utilized in the early phases of innovation (idea generation, evaluation and selection) to increase the innovative capability of firms in a given region or sector. For the purpose of identifying the opportunities and challenges of such collaboration this paper presents selected findings of two recent empirical surveys carried out at our institute. The focus of attention is centred on the needs of small and medium-sized enterprises (SME) which, on account of resource constraints, are usually more dependent on cooperation than big firms.

Governments today recognize the need to promote innovations and fund innovative projects, particularly those where public sector institutions such as universities cooperate with specialized R&D institutions. This article discusses how cooperation between industry, academia and government may be utilized in the early phases of innovation to increase the innovative capability of firms in a given region or sector. It presents findings of two recent empirical surveys carried out at our institute. The focus of attention is the needs of small and medium-sized enterprises (SME) which, on account of resource constraints, are usually more dependent on cooperation than big firms.

Lightweight design is regarded as a technological approach to engineer products in a more energy and material efficient- and, therefore, resource-saving way. In this sense, high-tech multi-materials, also referred to as composites, have become very popular for many decades due to their adaptability of material characteristics as well as high specific mechanical properties. However, composites in particular have also challenging characteristics, for example in the end-of-life of a product, as they cannot be recirculated in a typical material stream, or can only be recycled to a very limited extent (also known as "downcycling"). Alongside a common product lifecycle, we therefore describe challenges and constraints of ecological lightweight design and underpin the identified issues using semi-structured interviews with experts from the lightweight industry. We further approach the topic through the theoretical lens of frugal engineering, which critically evaluates and reduces the effective features and performances needed for an innovation thus resulting in more affordable and sustainable outcomes. Arguably, frugality might play a decisive role in ecological material transition as technology-driven innovation paradigms in search for the best material are substituted by more use case oriented engineering principles in search for the most suitable material.

The field of bionanotechnology, sometime also referred to as nanobiotechnology, has emerged from the intersection of nanotechnology and biotechnology. Today, it constitutes one of the fastest growing research fields due to its enormous potential. A particularly promising area of application for bionanotechnology is Life Sciences or Healthcare, where nanomedicine can help with advance diagnostics and targeted, patient-specific treatment in an effective and speedy manner while reducing the use of resources. Thus, bionanotechnology shows high compatibility with principles of "affordable excellence" that lie at the roots of the modern concept of frugal innovation. India and Germany both have made substantial progress in this field and many research institutions, universities, startups and established enterprises are active stakeholders of this industry, along with government bodies. Biomaterials, biosensors, functional systems, drug transport/targeting and implants are the five most active technology fields in Germany's nanobiotechnology sector, while a strong focus can be observed in the application areas of diagnostics, medical devices, therapeutics and regenerative medicine within the Health/Pharma sector. These areas coincide with India's thrust areas of research that is, however, still largely concentrated in research institutions. A bilateral cooperation between India and Germany can be highly rewarding as it can use complementary strengths of the respective ecosystems and help each other in overcoming their weaknesses, e.g. in ensuring translational research, developing common regulatory/safety standards, better utilization of resources & infrastructure, and creation of cutting-edge knowledge through joint research and exchange programs for researchers, scientists, students and entrepreneurs to intensify interaction. The study suggests a three-pronged approach for a bilateral cooperation: (a) identify promising avenues of cooperation, (b) pool resources, and (c) develop frugal solutions that have high chances of diffusion across the globe. The potential market-size and the lead market function of India in the field of frugal innovations can help the solutions that are developed in bilateral (or eventually multilateral) cooperation achieve faster commercial success while raising standards of living for all potential beneficiaries of the scientific progress, across the globe. This would make a very valuable contribution to the achievement of the Sustainable Development Goal (SDG) #3 related to "Good Health and Well-being".

In 2015, India set itself a very ambitious task of expanding its installed base of renewable energies by more than five times to 175 gigawatt (GW) within seven years (by 2022). It was envisioned that 60 GW would be contributed by wind power. In 2018, the objective was revised upwards to 227 GW in total and 67 GW for wind power. The country needed such challenging goals to ensure an early, universal, and 24x7 access to electricity for all citizens. However, India's per capita electricity consumption remains one of the lowest in the world. The young, aspiring and increasing population in a growing economy naturally engages in social and economic activities. As a result, the demand for electricity is increasing fast. Finally, there is a pressing need to switch from fossil fuels to renewable, replenishable and locally available resources for ensuring better energy security, reducing financial burden of energy imports, and - most crucially - for reducing carbon emissions to best protect the environment from a disastrous climate change. Wind energy has emerged as a success story in India. Today, India is leading globally on the fourth position in terms of installed wind power capacity. As a mature and cost effective technology, wind power has rapidly gained market share. The resultant economies of scale have again helped lower the costs and allowed firms to intensify innovation activity. Nevertheless, a huge market potential remains untapped, even as capacity utilization in terms of actual power generation has substantial scope of improvement. Germany is a global lead market for wind power, and renewable energies in general. It has a proven base of technological prowess and it has co-shaped the development of this industry. However, a certain saturation is setting in, as good sites for onshore wind power become scarce. There is a strong case for the two countries and their enterprises to cooperate in this sector. This case includes commercial, technological, humanitarian and environmental reasons. While there is a strong untapped potential in India and other global markets for affordable and excellent wind power solutions, technological cooperation can help in achieving affordable excellence ("frugal innovations"). Bilateral cooperation can help in realising the sustainable development goals (SDGs) in India and other developing economies of Asia, Africa and South America, in the process leading to a better life for millions, if not billions, of people. Finally, the environment and the biodiversity of our planet is at stake. Many of our non-human cohabitants are as severally, if not worse, affected by the human-intensified climate change, which potentially may threaten the existence of life itself on the planet if left unchecked. This study proposes an "IDEA" framework for Indo-German bilateral cooperation in wind sector that encompasses all relevant stakeholder in the value chain. The acronym stands for "Invest, Develop, Establish and Apply". If implemented, this framework can help in creating affordable, green excellence with a win-win-win component for the countries involved, for human welfare, and for the environment.