IDS suggests Brazil and India lead way in innovation
Innovation in business has begun to shift to emerging markets, according to a new report
Innovation in business has begun to shift to emerging markets, according to a new report
Traditionally business innovation has occurred in established markets like the US, Europe and Japan, but as the global economy shifts towards fast-growing developing markets, new techniques and ideas are starting to emerge in these regions.
According to a recent study published by the Institute of Development Studies, countries like Brazil, India and China are leading the way in developing new techniques. The report specifically focused on new value chains in the Brazilian auto and Indian software industries, according to lead researcher Hubert Schmitz.
The Brazilian auto industry has increasingly spent more money on R&D during the last decade, multiplying six times by 2010 and hitting $2bn. This was led by firms such as Arteb and Letande.
India’s software industry has also been engaging in significant R&D, with more than 60 percent of firms increasing their spending on new research.
The report says: “Such new activities are likely to be concentrated in the technology and knowledge domains in which engineering and science in the new powers are particularly strong: materials science and biofuels engineering in the Brazilian auto industry, and exploration of new software languages in India. Further investments in these fields can provide the means for effective problem framing and solutions in the future.”
The consequences of the shift in focus, says Schmitz, are that either established markets like the US and Europe will evolve and benefit from Brazil and India’s innovation, or they will see a rapid decline in jobs and innovation as new businesses drive prosperity.
