Abstract
“Reverse innovation” refers to the case where an innovation is adopted first in poor (emerging)economies before ‘trickling up' to rich countries. Although examples of reverse innovation are still rare, it raises interesting theoretical questions, such as what kinds of innovation emerging economies are likely to spawn, why such innovations might diffuse to rich countries, what competitive advantages local and foreign firms enjoy in this process, and how it affects the global strategy and organization of established MNEs. Research on reverse innovation can enrich and extend mainstream theories of innovation, internationalization, MNE management and FDI spillovers.
The model industrial manufacturers in biomedical field have followed for decades — developing high-end products at home and adapting them for other markets around the world — won’t suffice as growth slows in rich nations.
To tap opportunities in emerging markets and pioneer value segments in wealthy countries, companies must learn reverse innovation: developing products in countries like China and India and then distributing them globally.
While multinationals need both approaches, there are deep conflicts between the two. But those conflicts can be overcome.
If industrialized countries manufactured don't master reverse innovation, the emerging giants could destroy the companies. We strongly suggest that, young biomedical engineers, rather than being managed should tap into the career opportunity represented by the reverse innovation approach.