DEEP Insight
Diving Into the New Innovation Landscape 
The Eastern Current
Authors: De Meyer, Arnoud
Date: Third Quarter 2011
Tags: emerging, reverse innovation, dispersed, industrial, R&D
Today when the business world asks where the next innovative product or process will come from, many people start looking East. Based on decades of interaction and interviews with privileged observers in Asia, the author starts by discussing four innovation trends that have been heavily influenced by the growing capabilities in the emerging economies of China, India and Southeast Asia. The sources of innovation have become much more dispersed, the lead user has become fragmented, innovation has shifted from technology to business models, and many innovations now come from simplifying or scaling down existing products or services. Then, the author considers the basic principles of good innovation management that apply across the board, focusing on four areas that require special attention in the emerging Asian context. Understanding the variations is important, he says, so that managers can begin to align their business strategies with each country’s unique competitive advantages, and manage innovation in emerging economies accordingly.
Tools and Frameworks:
> “Focusing Your Effort” lists the eight basic principles of innovation management that apply everywhere, highlighting four areas that companies need to devote more resources and attention to when engaging with the emerging Asian context.
> “Model of the Innovation Process” depicts a simplified model of the organizational integration necessary to implement innovation.
Examples Cited:
Audi, BMW, Citroën, Singapore Airlines, Novartis, Bayer, Silicon Valley, Keppel Integrated Engineering, Shanghai Zhenhua Heavy Industries Company, Nokia, iPhone, iPod, Smart Communications, Yosion Apple Peel, Tata, Nano, Narayana Hospital Group, Devi Shetty, IBM, Motorola, Texas Instruments, Huawei Technologies Ltd., ZTE Corp., Facebook, Orkut, Mixi, CyWorld, Wretch
Research Basis:
Over a period of two years, the author converted a series of interviews with senior managers, scholars, leaders of innovative firms and policy makers into some 30 case studies, which revealed several common categories of innovation challenges. These, in turn, provided the basis of a written survey, which was sent to senior managers operating in Asia. Firms were chosen for their diversity in size, sector and country of origin, including China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan and Thailand. The results are summarized in the book, Inspire to Innovate: Management & Innovation in Asia.
About the Author:
Arnoud De Meyer is the President of Singapore Management University
(SMU).
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