Innovating for the Global Marketplace
Several
MNCs are embracing frugal innovation to succeed in today’s tough economic
environment
India
is one of the top emerging markets. Over the last few years, it has also
emerged as a key market for path-breaking innovations. Most companies, domestic
and multinational corporations, are focusing on driving innovation for global
and local markets. Over the past two decades, there have been around 750
R&D centres established by MNCs in India, employing over 400,000
professionals. A recent survey of senior business innovation strategists by GE
ranks India higher than the US on interest in innovation. There are structural
and historical reasons for this enthusiasm.
National Imperative
Most emerging countries realise that innovation is the key to sustained growth. India too has introduced several measures to create a supporting ecosystem. In 2010, Prime Minister Manmohan Singh declared this as the Decade of Innovation. Towards this, the National Innovation Council has been established with an initial capacity of 500 crore to bring about a socioeconomic transformation driven by innovation. While unveiling the 2013 budget, Finance Minister P Chidambaram announced the setting up of a new fund to support organisations that bring key innovations from the lab to the market and tax benefits for companies that invest in setting up technology incubators in higher educational institutions. The India Innovation Growth Programme has been set up to provide funding, training and access to global markets for top innovators. All this infrastructural support sets the stage to supercharge Indian innovation on a global scale.
Affordable Innovation
Indians have always been enterprising. A historical scarcity of resources coupled with constraints has resulted in a focus on frugal innovation. This has led to affordable heart surgery (Narayana Hrudayalaya), palliative care (Kerala’s Neighbourhood Network), efficient cataract surgery (Aravind Eye Care), refrigeration without electricity (MittiCool), etc. The Indian consumer is price-conscious but is also willing to experiment if it is value for money. This opens up a lot of opportunities for agile innovators.
All the World’s a Market
Several MNCs are embracing frugal innovation to succeed in today’s tough economic environment. Tata Nano is a product intended to provide the comfort and luxury of travel to lower middle-class Indians. However, an upscale version of the car, to better suit the requirements of the Western market, is also being planned. Cisco’s ASR 901 is an environmentally hardened, high-speed, low-power consumption router optimised for managing 2G, 3G and 4G traffic in Indian conditions, but is also seeing great success globally. These are examples of how Indians in local as well as multinational organisations are developing innovative products and services in a competitive global environment. GE’s MAC 400, a high-end electrocardiogram machine, was designed for India but gradually found a market in the developed world as well. Global corporations regard competing successfully in emerging markets as key to their strategy. Not only do BRIC countries offer less operating costs, but they are also home to a rapidly growing middle class that is potentially a huge market for products and services. Therefore several MNCs have either set up R&D centres or renewed their focus on innovation in India. With millions of underserved consumers, innovation has the potential to bring about reforms in all walks of life, especially education, healthcare, banking. This is an exciting time to be an innovator — and consumer — in India.
National Imperative
Most emerging countries realise that innovation is the key to sustained growth. India too has introduced several measures to create a supporting ecosystem. In 2010, Prime Minister Manmohan Singh declared this as the Decade of Innovation. Towards this, the National Innovation Council has been established with an initial capacity of 500 crore to bring about a socioeconomic transformation driven by innovation. While unveiling the 2013 budget, Finance Minister P Chidambaram announced the setting up of a new fund to support organisations that bring key innovations from the lab to the market and tax benefits for companies that invest in setting up technology incubators in higher educational institutions. The India Innovation Growth Programme has been set up to provide funding, training and access to global markets for top innovators. All this infrastructural support sets the stage to supercharge Indian innovation on a global scale.
Affordable Innovation
Indians have always been enterprising. A historical scarcity of resources coupled with constraints has resulted in a focus on frugal innovation. This has led to affordable heart surgery (Narayana Hrudayalaya), palliative care (Kerala’s Neighbourhood Network), efficient cataract surgery (Aravind Eye Care), refrigeration without electricity (MittiCool), etc. The Indian consumer is price-conscious but is also willing to experiment if it is value for money. This opens up a lot of opportunities for agile innovators.
All the World’s a Market
Several MNCs are embracing frugal innovation to succeed in today’s tough economic environment. Tata Nano is a product intended to provide the comfort and luxury of travel to lower middle-class Indians. However, an upscale version of the car, to better suit the requirements of the Western market, is also being planned. Cisco’s ASR 901 is an environmentally hardened, high-speed, low-power consumption router optimised for managing 2G, 3G and 4G traffic in Indian conditions, but is also seeing great success globally. These are examples of how Indians in local as well as multinational organisations are developing innovative products and services in a competitive global environment. GE’s MAC 400, a high-end electrocardiogram machine, was designed for India but gradually found a market in the developed world as well. Global corporations regard competing successfully in emerging markets as key to their strategy. Not only do BRIC countries offer less operating costs, but they are also home to a rapidly growing middle class that is potentially a huge market for products and services. Therefore several MNCs have either set up R&D centres or renewed their focus on innovation in India. With millions of underserved consumers, innovation has the potential to bring about reforms in all walks of life, especially education, healthcare, banking. This is an exciting time to be an innovator — and consumer — in India.
Raj Minhans The writer is director, Xerox Research Centre India ET130620
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