Reverse Innovation
Name one reason why reverse innovation is necessary?
Cost sensitivity, different market needs, fewer regulations, public policy incentives, or new business opportunities.
What is a common benefit of reverse engineering?
Cost reduction, innovation, competitive analysis.
what are the 4 types of innovations?
Sustainable innovation, reverse innovation, Frugal innovation, disruptive innovation
How does reverse innovation differ from frugal innovation?
Frugal innovation focuses on affordability in EMs, whereas reverse innovation scales those ideas into DMs.
Why might developed markets resist reverse innovation?
Protectionism, brand perception, existing competitors, or regulatory barriers.
How did Cisco use reverse innovation in India?
Developed cost-effective networking products locally and expanded globally.
What is a major barrier when introducing an EM product to a DM?
Regulatory approvals (e.g., FDA, EU), brand perception, or investment risks.
What is one ethical concern of reverse engineering?
Intellectual property theft, legal risks, or unfair competition.
Name at least 3 of the 4 examples in the EY article
SIDBI startup mitra initiative, china government collaborate with private sector for AI, silicon valley with rwanda local hospitals delivery drone system, Brazil real estate registry office with start up in US
What are (1) local resources, (2) connection to global technology, and (3) an experiment-and-learn approach?
According to Govindarajan & Ramamurti (2011), these three key principles guide the success of local growth teams (LGTs) in emerging markets when developing reverse innovations.
What is decentralization of resources and decision-making power?
According to Govindarajan & Trimble, this structural tension arises because traditional multinational firms rely on centralized decision-making, whereas reverse innovation requires this alternative approach to empower local teams so you could see that as decentralization
What is the "Flying Geese Paradigm"?
In Shih (2012), this economic theory explains how emerging market firms move up the value chain by first imitating and then improving upon developed market technologies.