In brief - innovation - July 2025
- Guillaume Michaud
- Jul 15
- 4 min read
Is frugal innovation possible in Quebec in 2025?
In 2025, Quebec faces a particularly challenging economic climate. Between the trade war with the United States, a significant budget deficit, and businesses struggling to maintain their competitiveness, resources are becoming scarce. Yet, innovation remains more essential than ever. In this context, a question arises: how can we continue to innovate effectively without unlimited budgets?
The answer may lie in frugal innovation , the approach of "doing more with less." Far from being a quick fix, frugal innovation represents a design philosophy that prioritizes user value over technological sophistication.
To understand how frugal innovation fits into our ecosystem, we must first distinguish between two fundamentally different types of innovation. Value-preserving innovation is necessary to maintain competitive position. It involves the optimization of existing processes, continuous improvement, and the digitalization of operations. This innovation is often incremental and aims for operational efficiency. In contrast, value-creating innovation aims to create new offerings, new markets, and new business models. This is where disruptive innovation lies, the kind that transforms industries.
Frugal innovation transcends this dichotomy. It can serve both to optimize existing systems and to create new ones, but with resource constraints that require creativity and ingenuity. As the Indian concept of " Jugaad " explains, frugal innovation consists of "meeting a need in the simplest and most efficient way possible using a minimum of resources." This approach should not be confused with "low-cost": it aims for quality at the lowest socio-environmental cost.
The most democratic tool to begin this process remains process mapping . Unlike expensive R&D labs, mapping your processes only requires a critical eye and time to identify bottlenecks and optimization opportunities. The Quebec government illustrates this perfectly with its new CRIC, which replaces eight complex tax measures with a single one, saving administrative costs while increasing aid by $271 million over five years. This logic applies at all levels. SMEs are adopting progressive cybersecurity or no-code platforms to innovate without large budgets, while self-employed workers are optimizing their daily lives with hybrid tools and resource pooling .
The main challenge lies in changing mindsets. Quebec, like other developed economies, has built its innovation models on the assumption of abundant resources. Frugal innovation can be seen as a step backward, but it represents a smart strategic approach . It requires viewing constraints as catalysts for creativity, prioritizing impact over investment, and thinking about sustainability from the design stage .
In today's environment, organizations that master frugal innovation develop a particular resilience . They become less dependent on funding cycles, more agile in the face of change, and better positioned to serve diverse markets . This approach also meets growing expectations for social responsibility by democratizing access to innovation and reducing their environmental footprint.
Frugal innovation isn't just possible in Quebec in 2025, it's necessary. It helps maintain competitiveness without compromising innovation, democratize it by making it accessible to all, and develop resilience in the face of economic uncertainty. The revolution begins with a simple question : "How can I map my current processes to identify opportunities for maximum-impact improvement?" A revolution that requires neither a colossal budget nor cutting-edge technology, just a fresh look at what we already do.
On our radar:
The evolution of the startup ecosystem in Canada highlighted
The 15th edition of StartupFest Montreal , which will take place from July 9 to 11, promises to be more than interesting with its theme "Ambition+"
Frugal innovation in the Quebec government with the CRIC
The abolition of eight tax measures to create a new formula for the research, innovation and commercialization tax credit (CRIC) simplifies the approach and will improve the government's capacity to support innovation.
Key events:
We were at the IASP in Sainte-Hyacinthe and the presentation by Maria Roche from Harvard fascinated us!
No more giant open-plan offices!
Harvard research proves that optimal innovation happens within a 20-meter radius. That's the perfect distance to exchange brilliant ideas without having to send a quick hello email to your colleague.
Our inspirations:
Coding without coding? It exists now!
You know that feeling when you look at computer code and your brain goes 404? Good news! In 2025, no-code and low-code platforms let you create apps by dragging and dropping things like you're playing Tetris, but for adults with real business to attend to. SMEs with startup budgets can finally compete in the big leagues without mortgaging their office.
We're not just talking about making a cute website with cat GIFs (although, respect). We're talking about creating inventory management systems, booking apps, and e-commerce platforms that actually make money. All this without learning Python, JavaScript, or wanting to throw your computer out the window at 3 a.m.
For SMEs with startup budgets and unicorn dreams, it's practically a jackpot. Before, you had to choose between eating ramen for 6 months to pay a team of developers, or pretending your revolutionary idea could wait. Now, your accountant might stop crying into their coffee every time you mention "technological innovation."
The nuclear egg that trolled the entire CES
At CES 2025, a mysterious startup arrived with the Enron Egg (yes, that Enron), supposedly a nuclear reactor the size of a coffee maker that can power your home for 20 years. Like, you plug an egg into the wall and boom, you're off-grid for the next two decades. No more Hydro-Québec, hello total energy independence with a gadget that takes up less space than your microwave.
People literally lined up to see this technological marvel. Investors were pulling out their checkbooks, tech influencers were making TikTok videos, and even serious journalists were asking questions about "the energy revolution that starts in your kitchen." The design was so beautiful, with perfect curves and an interface that gave off Tesla vibes, that no one thought to ask basic technical details like, "Uh, how exactly does this work without breaking the laws of physics?"
In short, it was a complete sham. A sophisticated joke to show how easily we swallow tech promises when they're packaged in beautiful marketing. The team behind it wanted to prove that we're all a little too ready to believe that a startup with a "Wow" presentation can reinvent the universe. Here, the inspiration is a great reminder to be vigilant when faced with grand, revolutionary promises.
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