A Typology of Reverse Innovation

Abstract

Reverse innovation commonly refers to an innovation initially launched in a developing country and later introduced to an advanced country. Adopting a linear innovation model with the four sequential phases of concept ideation, product development, primary target market introduction, and subsequent secondary market introduction, this study expands the espoused definition of reverse innovation beyond its market-introduction focus with reversals in the flow of innovation in the ideation and product development phases. Recognizing that each phase can take place in different geographical locations, the paper then introduces a typology of global innovation with 16 different types of innovation flows between advanced and emerging countries, 10 of which are reverse innovation flows. The latter are further differentiated into weak and strong reverse innovation, depending on the number of innovation phases taking place in an emerging country. This analytical framework allows recasting of current research at the intersection between innovation and international business. Of the 10 reverse innovation flows, six are new and have not been covered in the literature to date. The study addresses questions of ethnocentrism and the continuity of the flow of innovation, and discusses possible extensions of the model with respect to the number of geographical categories and phases of innovation. Four research propositions highlight areas for future investigation, especially in the context of optimizing a firm's portfolio of global innovation competence and capability. The implications for management are concerned with internal and external resistance to reverse innovation. Most significantly, while greater recognition and power of innovation in formerly subordinate organizational units is inconvenient to some, the ability to leverage the potential of reverse innovation makes a firm more likely to succeed in global innovation overall.

How Frugal Innovation Promotes Social Sustainability

“…"The development of frugal product innovation capabilities is a critical success factor in the development of reverse innovation" [35]. The ability of a firm to exploit the potential of reverse innovation makes it more likely to succeed in global innovation [36].…”

Providing Appropriate Technology for Emerging Markets: Case Study on China’s Solar Thermal Industry

“…Some scholars argue that traditional innovation models can be easily used in emerging markets [17,18]. Although some studies discuss the potential of emerging markets as new innovation opportunities [7], the literature focuses on business model innovations for promoting the application of preexisting technologies in emerging markets.…”

Atributos de inserção em projetos globais e capacidades locais em subsidiárias de multinacionais brasileiras

“…As capacidades estudadas são relacionadas às habilidades das subsidiárias para produzir no longo prazo um fluxo de tecnologia de inovação (KHAYYAT;LEE, 2015), considerando que as inovações identificadas pelos entrevistados podem ter ocorrido nas fases de concepção de ideia ou desenvolvimento da inovação (VON ZEDTWITZ et al, 2015). A Figura 1 mostra o diagrama dos objetivos deste trabalho de pesquisa.…”

“…Evoluindo da adaptação de produtos para o desenvolvimento de produtos específicos locais, as inovações promovem ideias e tecnologias próprias que podem ser expandidas para o mercado desenvolvido (VON ZEDTWITZ et al, 2015).…”

“…Diante do crescimento do interesse em pesquisas nos mercados emergentes e as classificações e tipologias recentemente estabelecidas (ZEDTWITZ et al, 2015), há um amplo campo de pesquisa para conhecimento das inovações locais que são desenvolvidas localmente e projetadas globalmente.…”