Concept:

 

Until now, reverse innovation has been viewed as a way of reinventing such large multinationals as GE, P&G, John Deere, EMC, Partners in Health, etc. 

 

Reverse innovation means that products created in relatively poor, developing economies, can be adapted for use in developed economies. Physical isolation, emergency care,  spur the adoption of reverse innovation. The other motivator is economic. Cheaper,  more effective ways of providing access to health care and other services, from the standpoints of physical accessibility and economic accessibility, is needed. An estimated 60 million Americans are not insured and cannot afford or access healthcare. Because of cost and location, the $50,000 average per capita income of Americans is meaningless. As Robert F Kennedy spoke in Kansas, GDP provides for everything but that which is most meaningful in our lives; the quality of life. Despite the Affordable Care Act, the number of Americans who are either not covered by health insurance or cannot afford it and are "underserved" by healthcare, is staggering. 

 

 

• A portable, battery operated ultrasound machine, developed in India, is made at a much reduced cost and is now available to treat auto and other accident victims in the US. 

 

• Lullaby baby warmers were developed in Bangalore, India, are battery-powered and are being used to treat newborns in isolated areas of the US and other countries,  at a fraction of the cost of more expensive and less accessible hospital equipment. 

 

• Other examples are John Deere mowers with "wings" to mow sloped levees and;

 

• A honey-based medicine developed in Mexico, being sold as cough medication by P&G in the US.

 

Reverse innovation is also bilateral. The German-led installation of a roof-mounted solar system to supplement the diesel-powered generators of a hospital in Haiti, means that patients can be treated more affordable despite blackouts and brownouts.

 

Reverse innovation has multinationals adapting to provide local product development, marketing, manufacturing, sourcing, selling and distribution. 

Having national counterparts located at the headquarters company to collaborate effectively with in-country nationals of the same culture, bridges linguistic and cultural divides. The mindset that such shared innovation can only be performed by multinational corporations is what must change.

 

 

The previous concepts of reverse innovation have involved multinational companies. To this scenario, we propose several innovations. First, there is no reason why reverse innovation cannot be conducted among SMEs. Secondly, whereas access to financing is critical to sustain reverse innovation and bilateral trade in ideas, there exist media, PR and events firms which cater to the needs of the "second-tier" client and can meet their marketing, sales and distribution support needs, while providing access to all of the other support services needed for sustainable reverse innovation. This reverse marketing provides for two-way or bilateral trade. 

 

The reverse innovation with SMEs in bilateral trade creates a natural hedge against currency fluctuation and exchange risk.