Tata Nano: Poor Man's Car or Radical Innovation?

Abstract

A perusal of the history of innovation shows that great innovators brought the goods enjoyed by the elite to the masses. Tata’s Nano will go up as another example in this inspiring history. While some argue that the recession is a bad time to launch new products, a body of research shows that new products are the least resistant to recessions. Indeed, the Nano has the potential of flourishing despite the recession, becasue of its extraordinary low price. It’s a radical innovation precisely because it is a poor man’s car.