Green and competitive: who influences the development of advanced frugal product characteristics?

Abstract

The societal shift to a greener economy is subject to a trade-off. Green products are often more expensive than conventional products, making them less attractive and thus slowing down the transition. Advanced Frugal Innovations overcome this trade-off and are able to accelerate the transition through the inclusion of broader population groups. Based on a company survey, this research examines the influence of societal actors on green and cost-related product attributes that influence this trade-off using correlation analyses and meaningful illustrations. Using the German manufacturing sector as an example, this new database provides first empirical results that illustrate how societal and systemic agents affect the development of green and competitive products. The results indicate that the societal and systemic situation in Germany has an inhibiting effect.