Technology+Diffusion+&+Adaptation+-+Conditional+Qualifier

[//comment contributed by SJ unedited//]

One of the most important outcomes of globalization in regards to developing countries is promotion of innovation. This process is supported by tremendous, ongoing technological and scientific progress that takes place in developed countries, gradually replacing product based society with knowledge based society.

The socio-political environment in developing countries differs profoundly from the environment in developed countries. The former face some obstacles, or better said show a significant amount of incompetence in promoting and/or adopting/adapting innovation. By innovation is not understood only technology innovation or invention, but business innovation as well, new approaches to marketing, management or supply chain. The obstacles originate from inadequate education system, poor business conditions, undeveloped infrastructure, no relation between the universities and industry, improper government polices. However it is not about the formal set of regulations, but their implementation in practice. In most of the cases the implementation is the weakest link in the value chain. Behind this general and simplified approach the detailed picture is much more complicated. The innovation landscape in developing countries is burden by differences in cultural and historical heritage, level of the development, mentality of the people etc. Hence, the innovation policies have to be customized to country specific or region specific conditions. One common attribute of majority of low income countries is lack of technology infrastructure.

Consequentially, the main concern of the innovation policies should be development of technology infrastructure. The other peculiarity associated with developing countries is indigenous knowledge. It is a non written, non documented knowledge, in possession of local communities, usually related to some traditional healing or agriculture methods. However this knowledge is very important for local population and it has to be used as a basis for creating innovations. Talking about innovations in developing countries, one has to clarify that the innovations have to be designed according to the needs of the people who live there and has to add value to their lives. By no meaning they have to be compared with the innovations invented in developed world, since the standard of living is very different.

Thus, it should be something new or some improvement in local context. The other point is whether the experience and/or model of transferring scientific solutions into business practice from the technologically more advanced countries can be mapped to the less developed ones. For instance knowledge advanced countries are characterized by strong IP protection policy. Would this type of policy if applied in a country with few innovations resources and limited infrastructure rather foster or hinder the innovation climate? The IP policy could be an instrument to protect the rights of the inventor and those who share the endeavor with him/her, and acts as perk of working for the companies who compete in innovations abundant landscape, but for the countries where the innovations are rare its role would be definitely opposite.

Open innovation model would fit better to the developing countries' environment, since it offers collaboration, open network and support to those who focus their effort in enhancing the awareness of the importance of the innovation in the economical development of the country. Balancing limited resources between supporting both diffusion and commercialization to achieve outcomes superior to those of diffusion alone – in the short and long term. Experience of developing countries with open innovation and open business models in supporting and extending technology absorption and adaptation.

Open Innovation: A Key to Achieving Socioeconomic Evolution • 3 How Smaller Companies Can Benefit from Open Innovation
Henry Chesbrough Economy, Culture & History JAPAN SPOTLIGHT Bimonthly []

How should SMEs address the opportunities and risks posed by open innovation? SMEs have some structural disadvantages when it comes to open innovation. They often lack many of the capabilities necessary to identify, transfer and absorb external ideas and technologies effectively from outside into their firms.

See IPP Inclusive and Reverse Innovation for additional discussion of related issues.

//See IRI Jnl. for objectives of companies in developed nations re innovation in developing ones.//