What is the relationship between national culture and innovation? Do countries have the same opportunities to generate innovations? Answer from one of the following perspectives: A) Consider the story of Robert Noyce and Silicon Valley in the American Experience episode. He is considered the originator of the Silicon Valley ethos and therefore much of the modern American entrepreneurial and innovation culture, and this may not have occurred if not for the “miraculous” happenstance that Noyce had access to transistor technology when he did, and where he was in school. What is the likelihood that this would happen to other countries’ “Robert Noyces”? And would these “Noyces” be able to eventually create his/her own country’s Silicon Valley? For example, would this happen in China, given what Kao posits, and what Abrami and her co-authors argue? How about India? Russia? Malaysia? Discuss using more than just personal opinion. Pick one country and state your position using credible research citations. B) Discuss reverse engineering, as discussed by Winter and Govindarajan, in relation to disruptive innovation theory. Explain, using at least three citations, why western corporations should pursue the strategy of reverse engineering for developing markets to avoid being disrupted.
According to Winter and Govindarajan (2015), reverse engineering occurs when goods and services are produced or manufactured in emerging economies and, then, exported to markets in the advanced economies. The products are manufactured in developing economies such as India and subsequently sold in the developed economies such as Europe and the United States of America. It is important to understand that the products exported to the developed markets are subject to significant tweaks, a strategy designed to add a global look (Eilam, 2008). Companies that operate in the West are now finding it difficult to deal with rivals from the Third World and developing economies, which are producing and selling consumer goods and services at better prices.
Economists argue that Western companies can recreate a competitive advantage over their rivals from the developing economies by embracing reverse engineering. The idea is to have Western corporations design and manufacture consumer goods in the developing economies and, subsequently, export them to global markets after standardization. Companies operating in the developing economies enjoy a lower cost of production compared to their rivals in the developed economies (Messler, 2014). The cost of raw materials, labor, and other inputs are lower when operating in the developing and undeveloped economies. Emerging economies are giving birth to disruptive innovations that threaten the position of foreign manufacturers as market leaders. Therefore, Western manufacturers would keep up with developments that are happening in less developed markets. Western companies that embrace the concept would avoid being disrupted by foreign competitors.
Eilam, E. (2008). Reversing: Secrets of Reverse Engineering (1st ed.). Hoboken, NJ: Wiley.
Messler, R. W. (2014). Reverse Engineering: Mechanisms, Structures, Systems & Materials. New York: McGraw-Hill Education.
Winter, A., & Govindarajan, V. (2015). Engineering Reverse Innovations. Harvard Business Review.
by EssayRoyal, Dec. 7, 2019, 5:13 p.m.