Abstract：The fundamental driver of frugal innovation is a proactive response to the conditional constraint.The main form of frugal innovation is low price and high quality,and it has a significant“triple bottom line”effect.Frugal innovation is essentially a business model innovation,which requires new resource structure,transaction structure and value structure.The business model framework of frugal innovation can be summarized from the value proposition,resources and capabilities,the internal and external organization,cost structure and income structure.To promote frugal innovation,Enterprises should establish its own unique value proposition,try to transform the constraints into innovative opportunities,strive to create low-cost value chain,effectively foster capabilities of frugal innovation,and actively carry out open innovation
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