Chapter 15: Sustainable Human Development in Southern Africa: The Frugal Innovation-Knowledge Intensive Entrepreneurship Nexus

Following Joseph Schumpeter's conception of innovation as ‘new innovations’, this chapter contends that innovations that transform lives in developing countries of Southern Africa are not radically new and different novelties but rather ‘new combinations’ at the interface of new materialisations (creative expression) and exploitations of new opportunities (entrepreneurship). We argue that this posture is not a contestation of the reality that novelty enter the system through the development of new technologies, processes and new ways of organising, but rather such novelty is a process of recombining existing elements in new ways. I build on this argument to demonstrate that in resource-poor contexts where institutional voids frustrate entrepreneurs' potential to deploy innovation capabilities for generating groundbreaking innovation, innovations and entrepreneurship are outcomes of ‘tinkering’, improvision and refinement of unsophisticated creative ideas. Drawing on exemplars from health, education, finance and poverty alleviation interventions that support sustainable human development, I also demonstrate that high knowledge-intensive entrepreneurship (KIE) and low knowledge-intensive frugal innovations are mutually constitutive and recursive outputs of the interaction of knowledge application and innovation conversion rather than serial processes of cause and effect. Using combinative innovation, internal coupling and combinative capabilities as heuristics for understanding the entrepreneurship–innovation nexus, I provide empirical support to the view that entrepreneurial effectuation, new combinations, bricolage and improvision constitute useful cognitive arena for the conversion of entrepreneurial and innovation behaviours, practices and processes into KIE and frugal innovation outputs.