Understanding low-end innovators Low-end innovations can prove highly profitable for businesses, yet many decision-makers remain biased towards high-end innovation. We spoke to Professor Sebastian Gurtner about his research into the characteristics of low-end innovators and how organisations can effectively support the development of new low-end products. The emergence of a new product or technology often generates great interest, yet low-end innovations targeted at consumers with a low ability to pay can also boost profits and improve a company’s commercial prospects. While many commercial success stories are linked to high-end innovation and the development of new products targeted at consumers willing to pay above the average price, low-end innovation can also be profitable, says Professor Sebastian Gurtner, Head of the Institute for Innovation and Strategic Entrepreneurship at Berne University of Applied Sciences. “Some companies have made a lot of money with low-end innovations,” he explains. However, evidence shows there is still a bias towards high-end innovation projects among decision-makers. “We see that 8 out of 10 people would invest in high-end innovation over low-end innovation, even where there is the same profit and risk forecast for both scenarios,” outlines Professor Gurtner.
Low end innovation Low-end Innovation: An Investigation of Key Individuals and Organizational Ecosystems Funded by the Swiss National Science Foundation (SNSF) Professor Sebastian Gurtner Bern University of Applied Sciences Business School Institut Innovation and Entrepreneurship Brückenstrasse 73 3005 Bern T: +41 31 848 34 27 E: sebastian.gurtner@bfh.ch W: https://www.bfh.ch/ en/research/researchprojects/2018-657-112-149/
Low-end innovation This topic is at the heart of Professor Gurtner’s research in a new SNF-funded project in which he is exploring two larger themes, the first of which is to understand the low-end innovator as a person. Within the project researchers have reviewed the literature and conducted interviews with people from industry, particularly in the energy, transportation and healthcare sectors, aiming to identify specific individual characteristics common to low-end
instrument to help companies make decisions about new products,” outlines Professor Gurtner. The second major theme in the project involves investigating the influence of the surrounding eco-system or environment of an innovator. “We are looking at innovators at all different levels. Most low-end innovators are entrepreneurs, working in small companies and start-ups. But we also have case studies where we see low-end innovation happening in larger companies,” says Professor Gurtner.
We see some innovators that seek opportunities, regardless of whether they are low-end or high-end. We also see innovators that focus only on low-end innovation. They are typically much more demand-focused. innovators. “We are trying to find out how low-end innovators work,” explains Professor Gurtner. Typically, low-end innovators are motivated by the goal of addressing societal challenges, while others are more financially driven. “We see some innovators that seek opportunities, regardless of whether they are low-end or high-end,” continues Professor Gurtner. “We also see innovators that focus only on low-end innovation. They are typically much more demand-focused, or focused on problem-solving.” A deeper understanding of the motivations of key personnel could help guide a company’s commercial strategy, an area of great interest to Professor Gurtner. Part of the project involves developing a scale to assess whether an individual is more likely to focus on highend or low-end innovation. “This could be an
The right kind of working environment can encourage development and innovation, yet this does not mean that the working environment has to be completely harmonious however. This is another topic of interest to Professor Gurtner. “Sometimes creativity and innovation arise out of conflict,” he says. There is a lot still to learn about how the relationship between an individual and the organisation affects the capacity for innovation, while Professor Gurtner also plans to build further on the project’s findings so far. “We’re interested in measuring the societal impact of innovation. Our hypothesis is that those low-end innovations actually have a greater positive societal impact than high-end innovations, while having the same economic impact. This would be a quantitative, larger study,” he continues.
Professor Sebastian Gurtner is the Head of the Institute for Innovation and Strategic Entrepreneurship at Berne University of Applied Sciences, he previously held research positions at the Technical University of Dresden. His research interests include innovation, entrepreneurship and strategic management.
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