Reverse Innovation

Reverse Innovation

Originally submitted by Vanessa Watkins
last updated by Rafael Popper

Weak Signal's progress: advanced

This Weak Signal came from: 
European Commission Framework Programme for RTD

The theme/scheme related to this Weak Signal: 
Theme 8 - Socio-economic Sciences and the Humanities

The sub-theme that best relates to this Weak Signal: 
Blue Sky Research on emerging issues and other research economies

Weak Signal's description 
Traditionally, innovations found their way from developed to emerging markets in the form of less-sophisticated products at lower prices. The numbers of examples that work the other way around are increasing. It is more and more the case that innovation "trickles up" from emerging to developed nations. GE Chairman Jeffrey calls this tendency “reverse innovation”. Which means to say that since developing and emerging countries have become big and sophisticated markets a growing number of Western companies make use of cheap R&D and low-cost manufacturing in these regions and start innovating locally for the domestic market. Afterwards they introduce the innovations to their Western home markets.