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FRUGAL AND REVERSE INNOVATION FOR HARNESSING THE BUSINESS POTENTIAL OF EMERGING MARKETS — THE CASE OF A DANISH MNC

Research paper by NIVEDITA AGARWAL, ALEXANDER BREM, SANJEET DWIVEDI

Indexed on: 04 Mar '19Published on: 19 Feb '19Published in: International Journal of Innovation Management



Abstract

International Journal of Innovation Management, Ahead of Print. In recent years, there has been a shift in the epicenter of innovation from developed to emerging markets. Western multinationals are increasingly harnessing the potential of emerging markets by setting up local subsidiaries and developing frugal and reverse innovations. This study is an attempt to explore this shift and investigate the process of development of these innovations using a case study analysis approach. The study analyses the case of a technology-based Danish multinational (MNC) and explores how frugal innovations in India and China are developed. Based on nine interviews with leading R&D experts, the results provide evidence for the ongoing innovation shift and offer insights into the development of frugal products in local R&D projects. Growing traction towards reverse innovation, where MNCs are developing frugal products for global markets is also an important finding.