ABSTRACT
This chapter explains concept and strategies, focuses on innovations, primarily from a general perspective, and deals with integrating the poor into innovation processes. New strategies in distribution are as critical as product and process innovations. Contracting innovations usually build upon the existing market environment. Companies fail to employ suitable innovations when they lack the 'customer competence', which includes understanding of customers' needs, their buying process, communications and distribution channels to reach them. The top of the pyramid, a relatively small number of consumers, is responsive to international brands and have the income to afford them. R. U. Mendoza and N. Thelen note that the poor are able to engage more fully in innovation processes if they are able to stabilise and increase their income streams through increased labour market participation. Based on their experiences with the wealthy top of the pyramid, companies strive for capital intensity and labour productivity.
