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Trend Watch

Embracing "Polycentric Innovation"

 

As we watch the world's markets shift and seemingly "trade places," the most astute entrepreneurs and savviest companies are recognizing that some of the most interesting innovation is coming from unexpected places.

A groundbreaking and insightful special report from the Apr. 15th issue of The Economist called "The World Turned Upside Down" discusses the rise in non-Western countries and companies becoming "powerhouses of innovation." Such a rise, the report states, is resulting in Western companies "embracing 'polycentric innovation' as they spread their R&D centres around the world."

The report explains:  

"People in the West like to believe that their companies cook up new ideas in their laboratories at home and then export them to the developing world, which makes it easier to accept job losses in manufacturing. But this is proving less true by the day."

So-called developing countries are becoming a hotbed of innovation though new approaches to business and production. They are succeeding by thinking in ways that the West does not.