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The theme of a number of upcoming global trade and investment conferences is innovation. Quoting from the book titled “Leading Across New Borders”, “Michael Porter once said that innovation is the central issue in economic prosperity”.  The innovation theme is definitely hot topic these days.  How could it not be…successful innovation results in unique value for customers, new jobs and a positive impact on the society.

Similarly, companies that enter new foreign markets successfully can bring unique solutions they created in their home country, new jobs and a deep interest in the local society.  Great success happens when this market entry act is viewed as innovation by the market entrants and their audiences. Market entrants then focus on the strategic customer (user) and try to understand the local market nuances to possibly pursue product localization or localization in their business model (e.g. marketing and communications). The product or service being offered helps solve a problem, finds traction in the market and can be marketed with a scalable business model. Customers can focus on how this new product or service will serve them and improve their lives in unique ways.

However, this “market entry as a form of global innovation” thought requires a change in mindset.  As business people we need to understand that our products and services will make sense if we can introduce an innovative idea or business model nuance and communicate it effectively.  As consumers or business partners we need to be open to new sources of innovation.

Again, “Leading Across New Borders” lays out four global trends in innovation:

  • Incremental modifications to existing technologies in can produce disruptive outcomes.
  • Innovation in fast-growth markets can have disruptive impacts even in developed markets.
  • Subsidiaries and companies based in fast-growth markets with limited resources are often strong innovators.
  • Product innovation and social innovation are often linked.

Globalization surrounds us with its opportunities as well as challenges.  Strategic thinking and a global mindset can help seize opportunities while addressing any challenges.

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