Innovation Blowback

AlwaysOn Network has an interesting comment by John Hagel:

Innovation blowback refers to a phenomenon that’s occurring in the global marketplace, particularly [in] emerging markets like China and India. My sense is that most companies significantly underestimate the importance of those economies. In part because they’re viewing them simply as a growth market; they’re rapidly growing markets, they help to compensate for lower growth in the more developed economies, and so you ought to invest in those markets.

In fact, that’s only a small part of the opportunity. The real opportunity in those markets has to do with the pressure of very demanding customers who want more value at much lower prices and [who] are forcing product innovation in a variety of industries. It goes across from healthcare, to motorcycle manufacturing, to cell phone and wireless network equipment, where companies are being forced to fundamentally redesign products to deliver more value at lower prices. And guess what? Those products are not just going to serve those marketsthey’re going to blow back into the developed economies and become the basis for attacker strategies against products in these markets. So think about these emerging markets not just as growth engines in their own right, but as a seedbed for product innovation that will provide the basis for attacking strategies here in developed economies.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.