ABSTRACT
This chapter outlines the base-of-the-pyramid (BoP) approach, emphasising the '12 Principles for Innovation', as described by C. K. Prahalad. It focuses on three myths built into these innovation principles— the consumer education myth, the emptiness myth, and the scale and transferability myth—are confronted through detailed discussions showing how the assumptions behind them fail to address the realities of consumers, markets, enterprises and entrepreneurs in developing countries. The chapter deals with a synthesis of these analyses, comments about why BoP thinking is important to consider, and with recommendations about how BoP strategies might be transformed so that they more effectively contributes to sustainable development and poverty alleviation programmes. BoP thinking seeks to transform the relationships between multinational corporations and poor people in the Global South through a dramatic reframing of growth and innovation strategies at the corporate level. Innovation in BoP markets requires significant investments in educating customers on the appropriate use and the benefits of specific products and services.
