Five Factors that Impact the Globalization of Innovation

Abstract

Overview: Many multinational companies develop innovative new businesses in one geographic market that they would like to expand to another. This is often challenging, however, because market, economic, and cultural factors, as well as the regulatory environment, make direct transfer unlikely to succeed. Strong internal factors also can impede the transfer of an offering or business from one region to another. This article uses the experience of three businesses developed at Goodyear Tire & Rubber Company in the commercial trucking sector. All of these businesses started in one market and were later reshaped to enable their success in very different markets. We discuss the challenges these market expansions faced and the ways in which they were addressed. We propose a simple set of five factors (MERCI) for other companies seeking to grow through global expansion of innovative new businesses.