Constraints and Frugal Innovation: Enabling Sustainable Production Through the New Product Development Process

ABSTRACT This paper advances understanding of how constraint‐based thinking fosters sustainable innovation under resource limitations. Based on five case studies of small and medium‐sized enterprises and research groups developing frugal medical devices across diverse regions, it identifies how market, infrastructure, and user constraints shape design choices and innovation outcomes. Treating constraints as structured inputs rather than barriers, the study extends the constraint‐based thinking framework into an iterative, open innovation process for early‐stage product development. The findings refine theoretical understanding of how constraints foster sustainability‐oriented innovation and offer practical guidance for designing inclusive, affordable, and scalable solutions in underserved markets. By reframing scarcity as a creative driver, the study shows how constraints can catalyze frugal innovation and contribute to sustainable development.