Stepping aside from the International Product Life Cycle Theory (Vernon, 1966) that considered advanced economies as the only loci of innovation,
scholars are now looking at the growing role of emerging economies as potential sources of global innovation. The seminar will introduce the
concept of reverse innovation (Immelt et al, 2009; Govindarajan & Ramamurti, 2011) in its common market-based definition and will expand it
by adding an R&D perspective, highlighting the importance of where the innovation was ideated ® and developed (D) as determinants for a
reverse innovation. A new typology of reverse innovation will then be described, identifying multiple patterns of innovation where emerging
economies play an important role and framing the new concept within a global innovation setting.
Recognizing China as one of the most prominent emerging economies, the seminar will look at how the Chinese market can influence the
innovative activities of foreign MNCs and become a source for global innovation. Four case studies of foreign MNCs and R&D activities in China
will be presented and analyzed. These confirm an evolutionary path of foreign R&D activities in China from an exploitative to an explorative
nature, although we move away from a framework where host countries affect MNCs’ subsidiaries innovation activity based on their
technological richness and diversity (Almeida & Phene, 2004; Frost, 2001) stepping into a context where Chinese subsidiaries can be
considered as interpreters of local market characteristics, whose inputs configure unique innovation sources.
The results show how the Chinese competitive context can trigger global innovation if stimuli are properly received at both local and
corporate levels. Finally, insights for future research agenda will be provided.
Directions:
Due to preparation work for the MBS redevelopment project, access to the Harold Hankins building is no longer possible via the
University Precinct Centre. Please use the main entrance of MBS West (Building Number 29 on the Campus Map) and take the
lifts to the left of the main reception desk to the 6th floor. Turn left (‘access to Harold Hankins’ is signed) and go through the door
at the end of the corridor and left through a second door into the stairwell. Go down a half flight of stairs following the sign ‘access to
Harold Hankins’ and through the door into the Harold Hankins building and along the corridor until you get to the main stairwell/lift lobby.
Take the lift to the tenth floor then turn right out of the lift.
Alternatively, if you are a member of the University you can email john.ashton-2@manchester.ac.uk for access to Harold Hankins building
from the door on Booth Street West.
