Reverse innovation: a global growth strategy that could pre‐empt disruption at home
Abstract
Purpose
The authors, leading authorities on global innovation, warn that Western companies targeting emerging markets to help drive growth will likely find that the traditional strategy of global localization will prove inadequate. An alternative is their new concept of reverse innovation which this paper aims to introduce.
Design/methodology/approach
One example is the portable ultrasound machine developed originally by GE in the early 2000s to meet the particular needs of the Chinese market. Technology advances have since helped propel the growth of a $250 million business opportunity for GE globally, through finding many new applications in the USA and other advanced economies.
Findings
Historically, multinationals innovated in rich countries and sold their products in poor countries. Reverse innovation is doing the opposite.
Practical implications
Reverse innovation also highlights the potential for very low price‐point innovations originating in the developing world to generate new market demand back in the richer economies.
Originality/value
Reverse innovations can have global impact. Ultimately, they have the potential to migrate from poor countries to rich ones.
Keywords
Citation
Govindarajan, V. and Trimble, C. (2012), "Reverse innovation: a global growth strategy that could pre‐empt disruption at home", Strategy & Leadership, Vol. 40 No. 5, pp. 5-11. https://doi.org/10.1108/10878571211257122
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited