GLOBAL

INNOVATION
(GROUP 2)
What is Global
Innovation?
On a global level implies a concept
that includes managerial innovation,
technological innovation,
market innovation,
organizational innovation and
business model innovation. Global
innovation assumes that the
company can use (adequately)
assess (and apply) its technologies.

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Types of Global Innovation

1. Center for Global – signifies the deployment of innovation originating

from the home country or headquarters to the overseas location.
2. Local for local – commitment to the local region for developing locally
specific innovation.
3. Local for Global – is a famous concept of global innovation
4. Global for global

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Concept on Subsidiary Launched Innovation

• Metanational Innovation
To search, acquire, and utilize valid knowledge and information and
know how that potentially exist in a various locations around the world

• Frugal Innovation
Innovation that overcomes the unique limiting conditions of a
locality.

• Reverse Innovation
Unearthing developed country demand for functionality/low price of
products which were initially developed for emerging countries.
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The three approaches to Global Innovation

Staying Approach

When developing innovation, it is

important to immerse the operation in
the local area. Without long term stay
in the area there is a pattern of failure
in local innovation, which is the reason
why local operations become the base
of activity.

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The three approaches to Global Innovation

The visiting approach

This approach contends that the total

or certain expertise was sought after.
This method proves efficient to a
degree: operations become
unnecessary as well as the need to
travel to an overseas region.

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The three approaches to Global Innovation

The inviting approach

This approach advocates the inviting

of innovators from other companies
instead of visiting the local area
themselves.

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Global innovation: forces at work
• Increasing costs
• Shortening product life cycles
• Increasing importance of:
-customers participation in technology development
-networking, partnerships and alliances in technology development
-multi-disciplinary integrative technologies
-mergence of new centers of technological excellence: India, China, Israel, etc

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Innovation within the life cycle

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10 RULES FOR MANAGING GLOBAL
INNOVATION
1. Start small
2. Provide a stable organizational context
3. Assign oversight and support responsibility to a senior manager
4. Use rigorous project management and seasoned project leaders
5. Appoint a lead site
6. Invest time defining innovation
7. Allocate resources on the basis of capability, not availability
8. Build enough knowledge overlap for collaboration
9. Limit the number of subcontractors and partners
10. Don’t rely solely on technology for communication
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Innovation on a Global Scale
• Collaborating between widely • Battling energetic new competitors
dispersed locations that seem to have come from
• Discovering fresh ideas far from nowhere
headquarters • Rolling out products simultaneously in
• Learning about customer needs in several regions
fast-growing but unfamiliar • Choosing deliberately to enter the
markets world’s most competitive markets in
order to test new products or services

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Global Innovation Challenges
A Success Trap with Wider Jaws
A commonly cited obstacle to breakthrough innovations is the
so-called “Innovator’s Dilemma,” or “Success Trap.”

Business Model Innovation: Linking Functions and Regions

The most powerful innovations combine novel products and/or services
with innovations in business process as well as innovative marketing.
This is unlikely to happen automatically, as each of these functional
groups often has its own unique sub-culture and values that do not
guarantee the success of such interaction.  

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Leading Global Innovation
• Embracing the “other”

• The Who, What, How of Innovation Strategy

• Goals of International Assignees

✔ Product Packaging
• Subsidiary
✔ Sales Innovation
and marketing techniques
✔ Concurrent development
✔ Acquisition of technical information
✔ Use of existing technologies
✔ Product Adaptation
✔ Original Inventions
✔ Co-design
• Corporate Heroes 13
The Outcomes of Innovation on Macro and Micro
Level

Macro Perspective: The Role of

Innovation
• EconomicinGrowth
our Society

• Increased well-being

• Innovation and the future of jobs

• Reduced sickness, poverty and hunger

• Communication and educational

accessibility

• Environmental sustainability 14
The Outcomes of Innovation on Macro and Micro
Level

Micro Perspective: The importance

of innovation for an organization

• Competitive advantage

• Maximize ROI

• Increased productivity

• Positive impact on company culture

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Global Innovation Index 2021

“This 2021 Global Innovation Index shows us that in spite of the massive impact of
the COVID-19 pandemic on lives and livelihoods, many sectors have shown
remarkable resilience – especially those that have embraced digitalization,
technology and innovation. As the world looks to rebuild from the pandemic, we
know that innovation is integral to overcoming the common challenges that we
face and to constructing a better future.”
Daren Tang, Director General, World Intellectual Property Organization

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Global Innovation Index 2021

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Key takeaways
1. The GII 2021 finds that the investment in innovation has shown great
resilience during the COVID-19 pandemic, often reaching new peaks, but that it
varies across sectors and regions.
2. Technological Progress in the frontier holds substantial promise
3. Only few economies have consistently delivered peak innovation
performance
4. Selected middle-income economies are changing the innovation landscape,
starting with China, Turkey, Vietnam, India and the Philippines are now pulling
their weight

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Key takeaways

5. Several developing economies are performing above

expectation on innovation relative to their level of economic
development
6. The geography of global innovation is changing unevenly.
South East Asia, East Asia and Oceania is closing the global
innovation divide with Northern America and Europe
7. New science and technology clusters are emerging, with the
majority located in only a handful countries

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THANK YOU!

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