Here's a fictional story
In the early 1960's, engineers at NASA working on the Apollo mission realize that austronauts will need to take notes in space, outside the the space shuttle. A normal ball-point pen would not work because:
1. No atmospheric pressure.
2. Extremely cold temperatures.
They are in a meeting where the solutions are proposed respectively:
1. Have the ink pumped into the housing with an initial overpressure to ensure ink flow.
2. Find ink with special thermal properties that will not freeze.
Suddenly, the meeting is interrupted by the frugal engineer who yells out-
"Could they use a pencil instead ?"

image from doodlymoodly
Back to reality
Frugal Engineering, although primarily embraced in developing and emerging economies, is quickly recieving global attention as a new form of disruptive innovation. "There is a frugal Innovation Lab at Santa Clara University, and a two quarter project course at Stanford University, the Entrepreneurial Design for Extreme Affordability program." wiki
Here's an article from March 2012 entitled, "Frugal engineering: An emerging innovation paradigm." The article is an excerpt from the book India Inside: The emerging innovation challenge to the West (Harvard Business Review Press 2012) by Nirmalya Kumar and Phanish Puranam.
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