The Frugal Economy

Humanity's pursuit of greatness meets the reality of finite resources

In The Frugal Economy: A Guide to Building a Better World With Less, award-winning author Navi Radjou delivers an incisive and engrossing treatment of how human beings facing climate change can reconcile our built-in drive to “do more” and “be better” with our planet's finite resources. You'll discover how we can thrive within planetary boundaries while achieving sustainable growth for generations to come.

In this groundbreaking book, enriched with over 100 inspiring examples, you'll learn how to create greater value with less and find:

• Practical strategies for doing more with less, benefiting both people and the planet
• Success stories of businesses fueling transformative megatrends like B2B sharing, distributed manufacturing, and triple regeneration
• Insights into reshaping economic systems to promote social and ecological harmony

Whether you're a businessperson, professional, student, academic, policymaker, regulator, or entrepreneur, you can join the movement towards a sustainable future. Get your copy of The Frugal Economy today and become a catalyst for positive change!

Introduction: Respect and Break All Limits 1

Chapter 1 Doing Better with Less 7

Part I The B2B Sharing Revolution 15

Chapter 2 The Big Benefits of B2B Sharing 17

B2B Sharing Boosts Business Efficiency, Agility, and Innovation 17

The Social and Ecological Benefits of B2B Sharing 21

Chapter 3 Mastering B2B Sharing 29

Level 1: Sharing Waste and Discarded Resources 29

Level 2: Sharing Physical Assets 33

Space 33

Production Capacity 34

Shipping 34

Equipment and Materials 34

Transportation 34

Rivals Unite 35

Level 3: Sharing Purchasing Power 36

Level 4: Sharing Employees 39

Level 5: Sharing Clients 43

Level 6: Sharing Intellectual Property and Knowledge 45

Mastering the Full Spectrum 47

Chapter 4 From Smart Sharing to Wise Sharing 51

Value Versus Values 52

Achieving SDGs Faster, Better, Cheaper 55

Part II Distributed Manufacturing and Hyper-Local Value Networks 61

Chapter 5 Scaling Out Manufacturing 63

9/11, COVID-19, and the Need for Adaptive Supply Networks 65

Scaling Out Versus Scaling Up 69

Scaling Out Auto Manufacturing to Maximize Local Impact 70

Scaling Out Energy Generation to Build Sustainable Communities 72

Chapter 6 Scaling Out Next-Gen Virtuous Economies 79

Turning Waste into Gold 79

Curing Our Fossil Fuel Addiction with the Bioeconomy 81

Enhancing Lives Through Personalized Medicine 83

Capturing and Using CO 2 to Create Local Value 85

Chapter 7 Hyper-Local Value Networks 91

The Value Chain Fails to Engage “Prosumers” 97

The Value Chain Doesn’t Favor External Collaboration 99

The Value Chain Is Optimized for Efficiency and Not Adaptability 99

The Value Chain Is Too Complex to Decarbonize and Reach Net Zero 100

Part III Regenerating People, Places, and the Planet 111

Chapter 8 The Rise of Regenerative Businesses 113

Regenerative Businesses Do More Good 118

Regenerating the Land and the Farmers Who Feed Us: Danone North America 120

Regenerating the Amazon’s Natural and Cultural Biodiversity: Natura 121

Regenerating Local Communities with Factories as Forests: Interface 121

Regenerating Rural America with Knowledge-Based Work: Sparq 122

Chapter 9 Regenerative Development 129

Expanding Awareness and Acting Consciously 131

Regenerating the Spirit of a Broken Town 133

Chapter 10 How Businesses Can Lead Triple Regeneration 141

Humanizing Regeneration and Anchoring It in Places 143

Boosting Corporate Vitality and Longevity Through Triple Regeneration 149

Meiji Yasuda Boosts Your Vitality Rather Than Insuring Against Mortality 152

Beyond Sustainable Fashion: Eileen Fisher Leads Triple Regeneration 155

Part IV Frugal America 159

Chapter 11 The US Must Lead by Example 161

A Pioneer in Frugal Health Care 165

Empowering Women Through Grassroots Entrepreneurship 168

Chapter 12 Let 3,143 Frugal Economies Blossom 173

B2B Sharing: Replacing Competition with Cooperation 173

Distributed Manufacturing: Unleashing Hyper-Local Opportunities 175

Triple Regeneration: Revitalizing the Soul of the Heartland 178

Conclusion: The Rise of Frugal Natives 187

Notes 191

Acknowledgments 229

About the Author 231

Index 233

NAVI RADJOU is a French-American scholar, an innovation and leadership advisor, and a bestselling author. Since 2021, Navi has been ranked by Thinkers50 as one of the 50 most influential management thinkers in the world. In 2013, Navi won the prestigious Thinkers50 Innovation Award, given to a management thinker reshaping how we think about and practice innovation. He is co-author of Frugal Innovation, published by The Economist, as well as the global bestseller Jugaad Innovation (over 200,000 copies sold worldwide) and From Smart To Wise, both published by Wiley. His TED Talk on frugal innovation has garnered over 2 million video views.

Human beings are built to “do more.” It’s what drives individuals to accomplish extraordinary things, like breaking the speed record in the 100-meter dash, landing people on the surface of the moon, and scaling Mount Everest. But what should we do when our limitless imaginations and ambitions bump up against a limited planet with finite resources?

In The Frugal Economy: A Guide to Building a Better World With Less, author Navi Radjou delivers an insightful discussion of how humanity can continue to develop and thrive for generations to come while remaining within the natural boundaries of planet Earth. Radjou argues convincingly that we must fundamentally change our economic system so that it provides a qualitatively different kind of growth that benefits everyone and enhances social and ecological harmony.

The book outlines how we can achieve limitless human growth on a finite planet while abandoning our destructive pursuit of infinite economic growth. You’ll learn how we can all live better with less, revisiting the evolutionary need of all creatures to “do more” and “be more.” You’ll also discover how we can begin respecting our planetary boundaries and reduce the negative externalities of business and market activities.

The Frugal Economy outlines the restrictions and incentives we should all embrace if we are to secure our future on Earth. You’ll find over 100 inspiring real-life examples from around the world of companies fueling the three megatrends that will radically reshape our societies: B2B sharing, distributed manufacturing, and triple regeneration.

Perfect for managers, executives, directors, and other business leaders, The Frugal Economy will also prove invaluable for regulators, policymakers, academics, entrepreneurs, founders, and anyone else with an interest in the future of humanity and the planet.

Praise for THE FRUGAL ECONOMY

“Navi Radjou understands that the last thing the world needs is another abstract economic theory. So, with over 100 real-life examples, this guidebook inspires you to join the visionary businesses and governments worldwide who are co-building a new economic operating system that truly benefits people, society, and the planet. Radjou shows how nations can maximize human potential and social well-being within planetary limits. This is what the future looks like—and has to for there to be a future.”
—Stuart Crainer and Des Dearlove, founders, Thinkers50

The Frugal Economy: A Guide to Building a Better World With Less, by Navi Radjou, explores humanity’s innate drive to achieve greatness and the challenges we face in a world of finite resources. Radjou compellingly argues for a shift in economic systems to promote sustainable growth that benefits both people and the planet.

This insightful book offers practical strategies for achieving regenerative growth within our planetary boundaries. Radjou discusses the need to embrace a frugal mindset, emphasizing the importance of doing better with less. Through real-life examples and thought-provoking analysis, readers will discover how businesses and communities can thrive while respecting environmental limits.

The Frugal Economy provides a roadmap for creating a more sustainable future, highlighting innovative approaches such as B2B sharing, distributed manufacturing, and triple regeneration. Suitable for business leaders, policymakers, entrepreneurs, and anyone concerned about the future of our planet, this book offers essential insights into building a better world for generations to come.