The Business Week definition is: "an improvisational style of innovation that's driven by scarce resources and attention to a customer's immediate needs, not lifestyle wants."
Jugaad, pronounced "Joo-gaardh" captures economics well. My textbook defines Economics as "how to satisfy unlimited wants with limited resources." In this definition I see that definition plus how consumer behavior to discount the future and maximize utility.
The Wikipedia defition is here. An example here.