Tapping the World’s Innovation Hot Spots

John Kao – Harvard Business Review

Ross Dick

Nick Ellis

Melody Smith Jones

Presented By-: Naval BhushaniaJGI IDEA

Systems Integration Mix & Match Approach

Changing dynamics of global innovation: What are the implications of this new “Innovation World”?

Systems Integration Approach: companies can take advantage of the differences in national environments through innovation arbitrage

Four Innovation Models: some exist in pure form while others are a component of a nation’s overall innovation strategy

Mix & Match: Choose from among the following models and/or blend country and corporate strategies

Model 1 – The Focused Factory

• What is a “focused factory”• Clear strategic intent• Infrastructure• Talent

• Examples:• Denmark• Singapore – Biopolis and Fusionopolis

• Who Benefits?

• Key Players:• GlaxoSmithKline (GSK)• Novartis

Model 2 – Brute Force

• What is “Brute Force”• Large source of low-cost labor• Innovation opportunities• Law of Averages

• Examples:• China• India

• Who Benefits?

• Key Players:• Microsoft• Berkshire Hathaway

Model 3 – Hollyworld

• What is a “Hollyworld”• Forming a global creative class (Silicon

Valley effect)• Developing an enticing innovation

destination

• Examples: • India – Indian Institutes of Technology grads

merged w/ Indian US Tech school grads • Singapore – Funding life-science grad students

• Who Benefits?

Model 4 – Large-Scale

Ecosystems

• What is a “Large-Scale ecosystem”• End to end innovation systems

• Stewardship, funding bodies, Research Institutions, academia, etc.

• Self-contained environments• Alliance-management skills needed

• Example:• Finland – Focus on education, science, &

technology (Aalto)

• Who Benefits?

Driving Forces

of Global Innovation 1) Innovation as a currency of global competition – pursuing the “global dream”; countries in-source American culture

2) Global war for talent – talented young innovators can be attracted anywhere through incentives and opportunities

3) Innovation as a national agenda – nations increasingly embrace innovation as a national priority

4) Power of networks – global networks are becoming increasingly intertwined

Are you ready for innovation world?

• Understand emerging models of innovation

• Knit together different strengths within and outside the firm’s walls

• Cultivate relationship building skills and alliance management in order to become a trusted members of the local community