The aim of this article is to describe the economic implications of frugal innovations using an integrative literature review. This article discusses the definition of frugal innovations from a historical perspective, depicting them as innovations of transformative change and analyzing frugal innovations in terms of the social and environmental context. It identifies implications for Global North countries wishing to market new frugal products. The authors suggest analyzing technological frugality as a new technological paradigm, with implications for the environment and sustainability. Frugal innovations are also analyzed in the context of “resource poverty.” This article concludes with a discussion of certain implications for public policy.JEL classification: O010, O14, O32, O33.