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SHRM-SCP: Reverse Innovation Emerging Market Products Imported to Developed Economies

By: Author Nina Norman

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Categories Exam

Learn about reverse innovation, where products created for or by emerging markets are imported to developed economies. An important concept for the SHRM-SCP certification exam.

Table of Contents

Question

Which is an example of reverse innovation?

Answer

Products created for or by emerging economy markets that are then imported to developed economy markets.

Explanation

Reverse innovation refers to the process of developing products or services in emerging economy markets and then importing and adapting those innovations for developed economy markets. This “trickle-up” innovation flow runs counter to the traditional “trickle-down” model where new products are first launched in advanced economies and later introduced in developing markets, often in a stripped-down form.

Examples of reverse innovation include:

  • GE’s MAC 400, a durable, portable, low-cost ECG machine developed in India and then sold globally, including in the U.S.
  • Renault’s Logan car, designed for developing markets like Romania and later marketed successfully in Western Europe.
  • Galanz’s inexpensive microwave ovens, developed in China to fit smaller homes and tighter budgets before being exported worldwide.

The key aspects of reverse innovation are:

  1. Innovating to meet the unique needs and constraints of emerging markets
  2. Focusing on delivering value for money and core functionality over bells and whistles
  3. Leveraging these innovations to compete in developed markets through new features or lower costs

For HR professionals, understanding reverse innovation and its implications is important for managing global teams, tapping diverse talent pools, and crafting strategies suited for both emerging and developed markets. It’s a critical concept to grasp for the SHRM-SCP certification exam and today’s globalized business environment.

SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.