Reverse Innovation: Chances and Challenges

Abstract

Emergence confronts India with multifarious challenges. The societal base is constituted e.g. by the rising middle class; potent to buy medium-tech artifacts if affordably priced. The market may stimulate e.g. both Indian producers as importers to develop an adapted medium technology. High-tech, capital intensive production, still remains a domain of capital rich countries. Background determinants are given by infrastructure, societal web, constitution and efficiency of government. The paper focuses on Innovation affecting product/market design. It focuses on ‘Reverse Innovation’ (C. Trimble; V. Govindarajan): its impacts and chances on economy, society and entrepreneurship; transferring challenges into market shares. Reverse innovation implies all aspects. Global companies develop locally adapted low-priced products for emerging countries; high tech medical apparatuses or household appliances or food. The yet unreliable infrastructure and differing cultural values need be considered. Products ought be innovated locally with indigenous researchers. As for example, low cost handies (revolutionizing communication) and low-cost cars. Novel technologies ought be created within and for emerging countries first. Different demands and conditions lead to new concepts, low cost structures and improved entire performance cycles. Concepts may be transferred to developed markets. To be innovative – creating novelties, not mere adaptations – challenges both emerging countries as industrialized economies for mutual benefit. Reverse Innovation constitutes but one of the paradigmatic factors in emerging countries. It is the pivot connecting salient aspects of the complex issues emerging countries must face.