What type of innovation does reverse innovation emphasize?

Reverse innovation emphasizes innovations developed in emerging markets for advanced economies. This concept acknowledges that many groundbreaking ideas originate in developing countries, where needs, constraints, and resources differ significantly from those in more established markets. These innovations often cater to local circumstances, such as affordability and accessibility, which can then be adapted and introduced into developed markets, sometimes with successful outcomes.

This approach challenges the traditional view that innovation flows only from advanced economies to emerging ones, highlighting the potential of reverse flows of knowledge and technology. By focusing on emerging markets, companies can tap into new ideas that are specifically designed to meet local challenges and then leverage that creativity when introducing products or services in advanced economies.

The options that refer to innovations developed for domestic markets, solely focused on cost reduction, or those that are highly regulated do not align with the essence of reverse innovation, which is all about leveraging insights from emerging markets to inform and enhance offerings in developed contexts.