A Glimpse on What Is Reverse Innovation?

Perhaps you’ve heard the term “innovation.” What about reverse innovation? It’s not an alternative to innovation. It’s an innovation type that is specific to developing countries. Continue reading to find out more about this fascinating topic.

What is reverse innovation?

A type of innovation called reverse innovation occurs when a product/service is developed first for use in a developing nation and later adopted by developed nations. Vijay Govindarajan, a professor at Dartmouth’s Tuck School of Business and Chris Trimble coined the term in their book, Reverse Innovation: Create Far From Home, Win Anywhere.

The Tata Nano is a famous example of reverse innovation. It was a low-cost car originally designed for India and then launched in Europe. Procter & Gamble also created a low cost version of Tide detergent in India and launched it in the United States.

What is the importance of reverse innovation?

Because it challenges the idea that innovation is something that can only be found in developed countries, reverse innovation is important. This also shows that companies in developing nations are more innovative than companies in developed countries, because they must be. They don’t often have the same infrastructure or resources as companies in developed countries, so they must be creative.

Reverse innovation has the potential of closing the global economic gap. Companies can improve the quality of life and increase economic growth by bringing new products and services to developing nations. This can help companies create new markets for their services and products.


Because it challenges the idea that innovation can only be achieved in developed countries, reverse innovation is a significant phenomenon. This also highlights the fact companies in developing countries are more innovative than those in developed nations, which is because they must be. This book by Chris Trimble and Vijay Govindarajan, Reverse Innovation: Create Far From Home, Win Anywhere, will provide more information.

Reverse Innovation

Pravin Shah

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