Trickle-Up Innovation

38 Pages Posted: 21 Feb 2014

See all articles by Miguel A. Montoya

Miguel A. Montoya

Instituto Tecnológico de Estudios Superiores de Monterrey

Mauricio Cervantes

Instituto Tecnolo´gico y de Estudios Superiors de Monterrey

Date Written: January 1, 2014

Abstract

The diffusion of innovations in business created to help solve the needs of poor people in developing countries was the subject of the analysis. The phenomenon of Trickle-up innovation was observed, whereby innovations created to serve the needs of poor people at the base of the pyramid (BoP) were subsequently utilized to serve middle or high-income populations within the country. These insights were derived from analysis of the pharmacy-doctor business model, the addition of a low-cost, quick-service medical consultancy next to a low-cost pharmacy, which emerged in Mexico in the late 1990s. Although initially the innovation was created to address the lack of public provision of health services for the BoP population, the innovation diffused and grew despite the subsequent introduction of free universal health insurance. This case demonstrates that country-specific solutions to market failures can be regarded as innovations for the BoP.

Keywords: Trickle up Innovation, Base of the Pyramid, business models, emerging economies

Suggested Citation

Montoya, Miguel A. and Cervantes-Zepeda, Mauricio, Trickle-Up Innovation (January 1, 2014). Available at SSRN: https://ssrn.com/abstract=2392469 or http://dx.doi.org/10.2139/ssrn.2392469

Miguel A. Montoya (Contact Author)

Instituto Tecnológico de Estudios Superiores de Monterrey ( email )

Av. General Ramón Corona No.2514
Zapopan, Jalisco, 45201
Mexico
523336693000 (Phone)

HOME PAGE: http://www.itesm.mx/wps/wcm/connect/Campus/GDA/Guadalajara/

Mauricio Cervantes-Zepeda

Instituto Tecnolo´gico y de Estudios Superiors de Monterrey ( email )

Ramon Corona 2514
Zapopan, Jal. 45201
Mexico
+52 3336693000 (Phone)

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