Posts Tagged ‘Global Hub’

Innovation strategies of selected German multinationals in India

Thursday, September 13th, 2012

Recently, René Neukirchner, student at TUHH carried out a study of “Innovation strategies of selected German multinationals in India” under the aegis of Research Project Global Innovation. The study carried out under supervision of Rajnish Tiwari was presented at the September meeting of German-Indian Round Table in Hamburg:

“On this occasion Mr. René Neukirchner, student at Hamburg University of Technology, will present results of a study of innovation strategies pursued by some of the largest German companies in India, which include BASF, Bosch, Daimler, SAP and Siemens. The study looks at a unique combination of “global innovation” with “open innovation”. It examines which projects are being pursued by those firms and to what extent they are engaged in research collaboration with local Indian partners. The underlying idea is to learn from such strategies and to reduce market risk and technology uncertainty.”

Those interested may download the study results as PDF, approx. 2 MB.

Frugal Innovations for the ‘Unserved’ Customer: An Assessment of India’s Attractiveness as a Lead Market for Cost-effective Products

Thursday, March 1st, 2012

New publication from the Institute for Technology and Innovation Management, Hamburg University of Technology (TUHH)

Title: Frugal Innovations for the ‘Unserved’ Customer: An Assessment of India’s Attractiveness as a Lead Market for Cost-effective Products
Authored by: Rajnish Tiwari and Cornelius Herstatt
Publication date: March 2012
Download: http://www.global-innovation.net/publications/PDF/Working_Paper_69.pdf

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Abstract

This study builds on our previous work, which had questioned the validity of certain assumptions of the lead market theory in the face of changing ground realities in a globalized world. Sustained economic growth and proven technological capabilities in some “emerging economies” like China and India call for a reassessment of the appropriateness of the “conventional wisdom” that had held true until recently. While our previous study had “re-built” a theoretical background of the lead market model by introducing some new elements, and doing away with certain others, with the help of two in-depth case studies; the purpose of the present study is to specifically assess India’s potential as a lead market for cost-effective frugal innovations.

The study crystallizes the inherent characteristics of frugal innovations, their development process and market success in the domestic and overseas markets by analyzing four successful product innovations from selected industries in India. The factors identified thus are then incorporated in the theoretic model to derive propositions about India’s lead market potential. Whereas affordability and economies of scale have traditionally constituted the primary concern for frugal innovations, an increasing shift towards “value proposition” is identified. Intensifying competition and growing customer aspirations are changing the nature of frugal innovations. The hitherto unserved customer demands attractive designs and modern technologies to come out of his shell of “non-consumption”. Our research confirms that frugal innovations can benefit end-consumers and firms, simultaneously. Better-designed products also have positive impact on the lead market potential, creating a virtuous cycle. The study also discovered that the increasing need for sophistication coupled with continued cost pressures is shifting the product development processes into the domain of “open global innovation”, which also helps reduce the negative country-of-origin effects faced by developing countries. The research would have implications for location decisions in setting up global innovation/R&D activities.

Keywords: Lead Markets; Frugal Innovations; India; Bottom of the Pyramid; Global Innovation; Open Innovation; Emerging Economies.

New publication: “Lead Market Factors for Global Innovation: Emerging Evidence from India”

Tuesday, April 5th, 2011

Lead Market Factors for Global Innovation: Emerging Evidence from India

By: Rajnish Tiwari and Cornelius Herstatt

Hamburg University of Technology (TUHH)

Institute for Technology and Innovation Management

Schwarzenbergstrasse 95, D-21073 Hamburg, Germany

Tel. +49 – (0)40 – 42878 3776 / Fax: +49 – (0)40 – 42878 2867

http://www.global-innovation.net/

Abstract

Securing access to “lead markets” is generally regarded as a key driver for the increasing globalization of innovation since these are considered to be “early indicators” for emerging customer needs. Such markets, therefore, offer a good chance of uncertainty reduction for in the innovation process of firms.  Lead markets are generally defined in terms of product segments within national boundaries and are thought to exist in economies with high per capita income, highly sophisticated markets and high international visibility.

We argue that there is increasing evidence of lead market tendencies in certain emerging economies, e.g. India. Both domestic and foreign-owned firms there, in recent years, have produced several internationally acclaimed “frugal innovations”, such as the Tata Nano or GE’s handheld ECG machine Mac400. Using several examples we demonstrate that India seems to have emerged as a global hub for low-cost, frugal innovations.

In this paper, we seek to crystallize the role of lead markets in globalization of R&D and identify the need for an update/extension to better reflect the changed ground realities. On the basis of emerging evidence we propose that sustained economic growth, voluminous markets, strong domestic technological capabilities, presence of foreign-owned R&D, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid worldwide.

Keywords: Lead Markets; Global Innovation; Globalization of Innovation; Internationalization of R&D; Bottom of the Pyramid; Frugal Innovations

Download links:

1. http://www.global-innovation.net/publications/PDF/Working_Paper_61.pdf

2. http://www.tu-harburg.de/tim/downloads/arbeitspapiere/Working_Paper_61.pdf

Benevolent Benefactor or Insensitive Regulator? Tracing the Role of Government Policies in the Development of India’s Automobile Industry

Tuesday, March 22nd, 2011

New publication

by Rajnish Tiwari, Cornelius Herstatt, and Mahipat Ranawat

Policy Studies, No. 58

Publisher: Honolulu: East-West Center
Publication Date: 2011
ISBN: 978-1-932728-90-3
Binding: paper
Pages: xiv, 64
Price: $10.00

Free Download: PDF

Abstract

The impressive and sustained growth of India’s automobile industry in recent years has catapulted it into the league of the world’s top-seven producers of four-wheelers. In the past decade, its exports have surged more than 25 percent a year on average. The turning point was arguably the 1991 policy of economic liberalization, but the impact of the reforms might have been subdued, if the Government of India had not played a pivotal role in the industry’s evolution. This apparent “paradox” may be the key to understanding why the industry has adjusted so quickly to globalization, even though economic reforms began relatively late.

This study identifies the main thrusts of policy regimes for the automobile sector since 1947, which began in an overregulation mode in the early period of independence. Nonetheless, the government consciously attempted to create and sustain favorable “innovation systems” at national, regional, and sectoral levels. Especially since 1991, many policy initiatives have benefited the industry and helped it reach the growth path it is following today.

URL: http://www.EastWestCenter.org/pubs/3768

Carl Zeiss Meditec Opens Center for Application and Research in Bangalore, India

Tuesday, February 8th, 2011

CARIn (Center of Application & Research in India) focuses on research in the field of ophthalmology

JENA/Germany, 07.02.2011.
Carl Zeiss Meditec has opened its Center for Application and Research (CARIn) in India this weekend. With this move, Carl Zeiss Meditec is strengthening its presence in high growth markets like India and targeting its investments at research and development projects. Carl Zeiss has already been represented with its own sales and service company in the country’s large urban centers since 1997.

Dr. Michael Kaschke, President and CEO of Carl Zeiss AG and responsible for the Asia region on the Executive Board, since 1 January 2011, comments on the opening of CARIn as follows: “Carl Zeiss has been active in India for more than ten years. However, for our company the country is more than a sales market: our customer base, as well as the industrial and research landscapes, have a lot more to offer. Therefore, in India we are investing not only in the expansion of our sales and service network, but also in product and application development. In this process, we are working very closely with our customers and partners in science.”

“Innovations form the foundation of our strategy that makes the latest medical technology available to high growth markets like India,” says Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG. “In the past, we already succeeded in developing products tailored specifically to the needs of doctors in these countries. With our own Center of Application and Research in India and a team of highly motivated staff, we can work even more closely with customers on site and integrate their needs even more effectively into our product developments.”

Research and development activities of CARIn at a glance:

  • Define products for Rapidly Developing Economies (RDE), i.e. growth markets like India or China
  • Develop new products for these markets, in particular software and solutions that enhance workflow efficiency in doctors’ offices and hospitals
  • Develop clinical applications and studies
  • Collaborate closely with medial research institutes, hospitals and universities in India in order to jointly develop medical techniques and solutions

CARIn – Facts and figures
CARIn, the Center of Application & Research in India, is located in the immediate vicinity of the Carl Zeiss sales and service company in Bangalore. The research and development work will initially be focused on systems for use in ophthalmology. Over the long term, however, the R&D activities will be expanded to include the entire product spectrum of Carl Zeiss Meditec. The first employees for the new center have already been recruited. The capacity will be expanded to up to 50 staff in the mid term.

CARin
Image Download (JPG: 2.0 MB)
CARIn, the new Centre of Application and Research of Carl Zeiss Meditec in Bangalore, India

Eva Sesselmann
Group Communications
Carl Zeiss Meditec AG
Phone: +49 3641 220-331
Fax: +49 3641 220-112
E-Mail: press@meditec.zeiss.com

Patrick Kofler
Investor Relations
Carl Zeiss Meditec AG
Phone: +49 3641 220-106
Fax: +49 3641 220-117
E-Mail: investors@meditec.zeiss.com

Number: 0014-2011-ENG OP

Source: http://www.zeiss.de/C1256A770030BCE0/WebViewTopNewsAllE/7D9C54AB8EEA5A51C125783000390A7A?OpenDocument