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The Case for Frugal Thinking

The Case for Frugal Thinking
Photograph by Ruth Fremson/The New York Times via Redux

This has been adapted from Vijay Govindarajan’s latest book, Reverse Innovation: Create Far From Home, Win Everywhere (Harvard Business Review Press).

Innovation in the rich world is based on the approach “Spend money and innovate.” In the U.S., you can see this clearly in health care. We push the frontiers of medical science and technology with very little attention paid to cost. Our health-care system is prohibitively expensive, yet does not guarantee the highest quality; nor does it provide universal coverage.