Changing Contexts• India: Software & offshore backoffice• China: Manufacturing• Western disillusion about “Free Trade”• Thomas Friedman- “The World is Flat”• Invention to Innovation• Innovation (West) - Labor (East)• Can India or the Margins of Developing world become a hub of innovation ?• If so, what it needs to be done ?
Facts and figures• Kumar & Puranam – LBS Study• "Where are the Indian Googles, iPods and Viagras, if the Indians are so bloody smart?"• Indians dont do innovation / Indians make good software programmers and accountants, but they cant do the creative• Rule-based, regimented education system in India that is responsible for killing all creativity.• Innovation labs of Silicon Valley – headed by Indians – trained in Indian schools.• Particular perspective on innovation: Innovation for end users- “visible innovation” Vs “Invisible Innovation”
Invisible Innovation• Economist Schumpeter - "Innovation is novelty in how value is created and distributed” - it could be new products and services, but it could also be new ways of producing products, or novel ways of organizing firms and industries.• Four types of Invisible Innovation:• Innovation for business customers: 750 R&D Centers – 400,000 Professionals – no more in MNC HQs, Global products - Microsoft, Google, AstraZeneca, General Electric, Philips – number of forward citations.• Product development innovation - Eg. XCL Technologies, Boeing 787 Dreamliner, collisions avoidance systems
Invisible Innovation 3. Process innovations - how do you create a new product or develop a new product or manufacture a new product? Eg. Call Center management -Predictive modelling - an injection of intelligence 4. New way to organize work - management innovation. - Global delivery model
Implications • Sinking skill ladder • Bottom rank to higher skill ranks • Move next step to India • Browning of TMT (Top Management Team) – Product Leadership / Market Leadership • Young Population – Labor Pools. • Caveat: Indian institutes and educational system, with a few exceptions, are incapable of producing students in the quantity and quality needed to keep this innovation engine going !
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