Tapping the World's Innovation Hot Spots

1. Tapping the World’s
Innovation Hot Spots
John Kao – Harvard Business Review
Ross Dick
Nick Ellis
Melody Smith Jones
Presented By-:
Naval Bhushania
JGI IDEA

2. 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

3. 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

4. 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

5. 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?

6. 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?

7. 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

8. 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