Winning the innovation game in emerging markets

Abstract

PurposeThis paper aims to provide advanced market managers in Europe, the USA or Japan with a long-term framework to prepare for and seize emerging market innovation opportunities.Design/methodology/approachThis paper is based on eight years of studying emerging market innovation opportunities, how to prepare for them and how to seize them. This study mainly draws on experiential learning in the automotive sector, particularly in China.FindingsThe framework details the strategic co-evolution of advanced market firms, emerging market governments, customers and competitors through four stages of innovation. Emerging markets such as China and India at different stages, depending on the national context of development as well as the particular market context.Research limitations/implicationsThis research is primarily based on cases in the automotive sector. Challenging the ongoing assumption of superior advanced market innovation, this paper contributes to insights on the new innovation world order and how to invest in emerging market innovation opportunities.Practical implicationsThe framework helps advanced market managers identify the strategic stage they are in, depending on the emerging market context. It provides them with long-term strategic insights, helping them anticipate moves and countermoves by emerging market governments and competitors, as well as anticipate the rapidly shifting needs of emerging market customers.Originality/valueThe four-stage framework brings together advanced market firms, emerging market governments, customers and competitors in a clear big picture. It conditions emerging market success in the even bigger picture of advanced market firms drawing on their learning in emerging markets in stages 3 and 4 to accelerate the renewal of their core business.