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Where is your company on the Polycentric Innovation Chart?

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Came across this post by Navi Radjou over at HBR about the evolution of R&D activities in MNCs. Navi describes various stages that MNCs typically go through as they expand their R&D activities in emerging markets.

  • Stage 3: The MNC starts networking R&D activities in emerging markets with the rest of their global network in order to cross-pollinate ideas for new products and business models across multiple regions. The P&L responsibilities for new product lines gradually shift to emerging markets.
  • Stage 4: At this ultimate stage, the R&D hubs in emerging markets are given a global remit as they now own the P&L responsibilities for the global design and rollout of new products. Senior execs physically located in India and China are now in charge of global business units and entire divisions.

According to Navi, who studies these issues extensively, only a few select companies have made it to these last two stages. Most others according to him are stuck in more primitive modes with regards to using talent from emerging markets.

Wondering if there more companies that are further along in this cycle than the ones that Navi cites: Microsoft, IBM & Cisco.


    Written by Varma Chanderraju

    February 23, 2010 at 9:00 am

    Posted in Innovation

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