What does 'reverse innovation' refer to?

Reverse innovation refers to the concept where innovations are developed and adopted in emerging markets before they are introduced in developed countries. This approach recognizes that emerging markets often present unique challenges and needs that require creative and tailored solutions. By innovating in these contexts, companies can create products or services that are cost-effective, simple, and meet the specific demands of customers in those markets. These innovations can then be leveraged and adapted for the developed markets, potentially leading to significant competitive advantages.

The notion of reverse innovation challenges the traditional view that high-income countries are the primary sources of technological advancements. It highlights the value of learning from diverse markets and reminds businesses that valuable insights and innovative ideas can arise from any part of the globe. This concept is particularly relevant in today's interconnected world, where emerging markets can quickly influence global business trends.