Access to “lead markets” is generally regarded as an important driver of the increasing globalization of innovation since these are considered to be early indicators for emerging customer needs. They are traditionally thought to exist in economies with high per capita income, sophisticated markets and high international visibility. We, however, propose that there is an increasing evidence of lead market tendencies in some emerging economies, e.g. India. We undertake a literature review to crystallize the need for an update/extension of the existing model to better reflect the changed ground realities and propose that factors such as voluminous markets, strong technological capabilities, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies of developing economies. 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.

1. 1 Summary This thesis intends to answer three questions: First, what is a lead market; second, what constitutes a lead market, and third, how companies can harness lead markets to generate global innovations. Considering the international, cross-border diffu sion of innovations one can observe that a particular technological design such as the facsimile machine, the personal computer or the mobile cellular telephone is often adopted by one country or region much earlier than by other countries which subsequently follow this country, which I will call the lead market. A lead market is defined as a country that adopts an innovation that is subsequently adopted worldwide. When different designs of an innovation compete internationally, the design preferred in the lead market becomes the global dominant design. The study suggests a theoretical explanation for the phenomena of lead markets and collects empirical evidence from a detailed case study of the cellular mobile tele of an innovation design adopted first phone industry. The international diffusion by the lead market, i. e. subsequent adoption of an innovation design preferred in the lead market by other countries, can be put down to the special market context in the lead market. The market context includes demand preferences, the environ mental condition and the degree of competition. Multinational firms are often confronted not only with varying market acceptance of new products and processes from country to country, but with national prefer ences for particular specifications of an innovation, i. e.

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.

Why does one country take the lead over others in the development and introduction of environmental innovations? This book analyzes lead markets for innovations such as fuel cells and photovoltaics, and offers insight into why this is. The authors use case studies to illustrate the policy framework that favors environmental innovation, and offer recommendations for research and development, environmental and industrial policies.

The technological revolution has reached around the world, with important consequences for business, government, and the labor market. Computer-aided design, telecommunications, and other developments are allowing small players to compete with traditional giants in manufacturing and other fields. In this volume, 16 engineering and industrial experts representing eight countries discuss the growth of technological advances and their impact on specific industries and regions of the world. From various perspectives, these distinguished commentators describe the practical aspects of technology's reach into business and trade.

On the threshold of the 21st century, an intensive debate about globalisation of R&D and technology markets is of crucial importance. Globalisation will carry on changing the framework for company strategies and subsequently for public policies. These conference proceedings contain the papers presented at the international conference "Globalisation of R&D and Technology Markets - Consequences for National Innovation Policies," which was organised by the BMBF and FhG-ISI. In the first part, following the introduction, the policy perspectives are formulated. In the second part the trends, issues and policy implications of the technological globalisation are presented. The third part focusses on international R&D strategies and the promotion of competence centres from the viewpoint of enterprises.

India is still perceived by some as a developing country that has yet to create world-class products of its own. However, this book shows that in recent years India has emerged as a lead market for frugality-driven innovations that are affordable, robust and successful even outside its geographic boundaries. Many global companies have recognized these changes and are ramping up their local R&D capabilities. At the same time, several Indian firms are venturing out to international shores and gaining access to new markets. Using a top-down approach, the book takes a closer look at systems of innovation at work and presents examples of successful, corporate innovations in multiple industries and their contextual conditions.