Research Project Global Innovation

Research Project Global Innovation A strong trend of internationalization of innovations (the 'Global Innovation') may be observed across all countries actively participating in the global economy. In developed, industrialized economies there has been a long tradition of R&D work by foreign companies. For instance, affiliates of foreign-owned firms spent nearly 13.5 billion euros on R&D in Germany in 2007. At the same time foreign-based affiliates of German firms spent nearly 9.5 billion euros for R&D work abroad. This phenomenon has also spread to emerging economies reputed for their scientific capabilities and growing middle class. This trend is reflected in the increasing number of offshore research and development (R&D) centers located in emerging economies such as China and India and in the increasing number of patents granted to domestic firms. Recent trends monitored in our research indicate a palpable shift in the motives and organization of such offshore innovation activities, which are increasingly motivated by “lead market” considerations. Securing access to lead markets is widely regarded as a key driver of the increasing globalization of innovation for these are considered to beearly indicators for emerging customer needs. Such markets, therefore, offer a good chance of uncertainty reduction for firms under pressure to deliver higher levels of effectiveness and efficiency in their innovation process. Even though lead markets have been traditionally thought to exist in highly developed, industrialized economies, our research shows an increasing role of developing nations such as India and China as lead markets. Especially India seems to be fast emerging as a lead market for “frugal innovations” generally targeted at the “Bottom of the Pyramid”. Additionally, there is increasing presence of “grassroot innovations”, which are giving rise to a potentially new variety of user innovations targeted at problem solving at the bottom-end of the economic pyramid and which can be globalized. Apart from offshore innovations taking place in emerging economies this project also examines and constantly monitors outward foreign direct investments from emerging economies such as India (“South-North” FDI) in order to evaluate and monitor innovation activities of emerging multinationals. Under the aegis of the Research Project Global Innovation we seek to address these and other emerging issues. A primary aim of this project is to observe, analyze and forecast developments in the field of globalization of innovations. The project also aims to provide decision-makers from selected industry sectors with useful instruments while deciding on whether or not to internationalize their innovation / R&D activities and to which locations.
Further Information: www.global-innovation.net

Publikationen

• A. Ramdorai/C. Herstatt, Hrsg.: BoP-Innovations in the Medical Industry, 2013.
• Herstatt/M.von Zedtwitz: Global products from innovation labs in emerging countries International Journal of Technology Management, , 2014.
• C. Herstatt/S. Praceus , Hrsg.: Grassroot innovations in the rich vs. the poor world, 2012.
• R. Tiwari/ C. Herstatt : Aiming Big with Small Cars, Emergence of a Lead Market in India. Springer, , 2013