Emerging markets like China and India have created a new battleground for companies, as middle-class consumers there have limited income and face various constraints. To compete in these markets, firms are developing innovative solutions that are both high value and low cost. These solutions are known as cost innovation, good-enough innovation, and frugal innovation. Each type of innovation is different in terms of its technology and market novelty, which affects how companies approach and develop their solutions. Understanding these different types of resource-constrained innovation is crucial for companies to succeed in emerging markets.