BU491 Lecture Notes - Lecture 2: Reverse Innovation, Company Flow, Market Power
Document Summary
Chapter 5 creating worldwide innovation & learning: exploiting cross boarder. There is a need to pursue multiple sources of ca simultaneously. Center-for-global innovation model: the new opportunity is in the home country: centralized resources & capabilities of the parent company are brought in to create a new product or process, implemented globally. Local-for-local innovation model: subsidiary based knowledge development: subsidiaries use their own resources & capabilities to create, innovative & adapt to the local environment, used primarily in local market. Locally leveraged innovation: unique capabilities of subsidiaries are shared worldwide. These transnational innovation processes have supplemented, rather than replaced the traditional center-for-global & local-for-local innovation processes. Center for global innovation: risk of market insensitivity, imperialism, might miss out on opportunities because you"re not doing research in each country; you"re r&d is located in the center. Local for local innovation: risk of duplication, inefficient subsidiaries don"t share r&d.
