Made in India for the World: An Empirical Investigation into Novelty and Nature of Innovations

Part of the India Studies in Business and Economics book series (ISBE)


After an initial introduction into the areas of innovations within emerging markets, the study develops a consistent innovation typology for categorizing large data samples from a variety of existing literature. It then describes and finally evaluates a sample of 178 innovations for the Indian market based on 38 different criteria. It uses internet-based news reports over a 2 year timeframe for the study sample.

The study’s results show a considerable amount of radical innovations and innovations with disruptive potential among the sample and a special concentration on small- and micro-sized innovators from India. It confirms previous suggestions that India is especially focused on innovations within the software and electronics engineering sectors. The results also support the importance of local knowledge and ‘social capital’ for successful disruptive innovation. Finally, a perceivable increase in the technology orientation of innovations by foreign companies suggests a continuous build-up of local technology-competence and foreign trust in the same.

A focus on local competencies and the leading position of India concerning innovative distribution are among the managerial implication of the study. It also opens numerous avenues for future research, expanding both depth and scale of the database as well as the analysis underlying this study.


Frugal innovation India Innovation typology Disruptive innovation Local competencies 



Rajnish Tiwari would like to sincerely thank Claussen Simon Foundation for supporting his research at TUHH with a generous grant.


  1. Ablett, J., Baijal, A., Beinhocker, E., Bose, A., Farrell, D., Gersch, U., et al. (2007). The ‘bird of gold’: The rise of India’s consumer market. San Francisco: McKinsey Global Institute.Google Scholar
  2. Bellman, E., Misquitta, S., & Glader, P. (2009). Indian firms shift focus to the poor. Wall Street Journal Online.Google Scholar
  3. Chakrabarty, R. (2010, November 21). Bollywood channel Zing creates India’s first channel innovation, press release. Mumbai: Zee Networks.Google Scholar
  4. Chandy, R. K., & Tellis, G. J. (2000). The incumbent’s curse? Incumbency, size, and radical product innovation. The Journal of Marketing, 64, 1–17.CrossRefGoogle Scholar
  5. Christensen, C. (1997). The innovator’s dilemma. New York: HarperCollins.Google Scholar
  6. Christensen, C. M., & Raynor, M. E. (2003). The innovator’s solution: Creating and sustaining successful growth. Boston: Harvard Business Press.Google Scholar
  7. Ernst, H., Dubiel, A., & Fischer, M. (2009). Industrielle Forschung Und Entwicklung in Emerging Markets: Motive, Erfolgsfaktoren, Best-Practice-Beispiele. Wiesbaden: Gabler Verlag.CrossRefGoogle Scholar
  8. Eurostat. (2008). NACE Rev. 2 – Statistical classification of economic activities in the European Community. Luxembourg: Eurostat – Statistical Office of the European Communities.Google Scholar
  9. Eurostat. (2011). Key figures on European business. Luxembourg: Eurostat – Statistical Office of the European Communities.Google Scholar
  10. Garcia, R., & Calantone, R. (2001). A critical look at technological innovation typology and innovativeness terminology: A literature review. Journal of Product Innovation Management, 19, 110–132.CrossRefGoogle Scholar
  11. Gerybadze, A., & Merk, S. (2014). Offshore R&D and host-country patenting of multinational corporations in emerging countries. International Journal of Technology Management, 64(2–4), 148–179.CrossRefGoogle Scholar
  12. Gibbert, M., Hoegl, M., & Välikangas, L. (2007). In praise of resource constraints. MIT Sloan Management Review, 48(3), 15–17.Google Scholar
  13. Gradl, C., Herrndorf, M., Knobloch, C., & Sengupta, R. (2010). Learning to insure the poor – microinsurance report. Munich: Allianz Group.Google Scholar
  14. Hart, S. L., & Christensen, C. M. (2002). The great leap. Sloan Management Review, 44(1), 51–56.Google Scholar
  15. Herstatt, C., Tiwari, R., Buse, S., & Ernst, D. (2008). India’s national innovation system: Key elements and corporate perspectives. East-West Center Working Papers. Economic Series 96.Google Scholar
  16. Hill, C. W. L., & Rothaermel, F. T. (2003). The performance of incumbent firms in the face of radical technological innovation. Academy of Management Review, 28(2), 257–274.Google Scholar
  17. Immelt, J. R., Govindarajan, V., & Trimble, C. (2009). How GE is disrupting itself. Harvard Business Review, October, 56–65.Google Scholar
  18. Knowledge@Wharton. (2005). Human capital: Can India bridge the knowledge gaps needed for research? Knowledge@Wharton.Google Scholar
  19. Kumar, N., & Puranam, P. (2012). India inside: The emerging innovation challenge to the West. Boston: Harvard Business Review Press.Google Scholar
  20. Lee, Y., Lin, B. W., Wong, Y. Y., & Calantone, R. J. (2011). Understanding and managing international product launch: A comparison between developed and emerging markets. Journal of Product Innovation Management, 28(s1), 104–120.CrossRefGoogle Scholar
  21. Mahajan, V., & Ramola, B. G. (1996). Financial services for the rural poor and women in India: Access and sustainability. Journal of International Development, 8(2), 211–224.CrossRefGoogle Scholar
  22. Nakata, C. (2012). Creating new products and services for and with the base of the pyramid. Journal of Product Innovation Management, 29(1), 3–5.CrossRefGoogle Scholar
  23. OECD, & Eurostat. (2005). Oslo manual: Guidelines for collecting and interpreting innovation data. Paris: Organisation for Economic Co-Operation and Development (in joint publication with Eurostat).Google Scholar
  24. Prahalad, C. K., & Hart, S. L. (2002). The fortune at the bottom of the pyramid. Strategy + Business, Spring (26), 2–14.Google Scholar
  25. Prahalad, C. K., & Mashelkar, R. A. (2010). Innovation’s holy grail. Harvard Business Review, July–August, 132–141.Google Scholar
  26. RBI. (2011). Handbook of statistics on Indian economy. Mumbai: Reserve Bank of India.Google Scholar
  27. Schumpeter, J. A. (1934). Theorie der wirtschaftlichen Entwicklung: Eine Untersuchung über Unternehmergewinn, Kapital, Kredit, Zins und den Konjukturzyklus. Berlin: Duncker & Humblot.Google Scholar
  28. Sehgal, V., Dehoff, K., & Panneer, G. (2010). The importance of frugal engineering. Strategy + Business, Summer(59), 1–5.Google Scholar
  29. Subramaniam, M., & Youndt, M. A. (2005). The influence of intellectual capital on the types of innovative capabilities. The Academy of Management Journal, 48, 450–463.CrossRefGoogle Scholar
  30. Tiwari, R., & Herstatt, C. (2012a). Frugal innovations for the ‘unserved’ customer: An assessment of India’s attractiveness as a lead market for cost-effective products. Hamburg University of Technology – Working Paper 69.Google Scholar
  31. Tiwari, R., & Herstatt, C. (2012b). India – a lead market for frugal innovations? Extending the lead market theory to emerging economies. Hamburg University of Technology – Working Paper 67.Google Scholar
  32. TRAI. (2011). Highlights of telecom subscription data as on 31st December, 2011. New Delhi: Telecom Regulatory Authority of India. Press Release.Google Scholar
  33. UNCTAD. (2005). Globalization of R&D and developing countries: Proceedings of the expert meeting. New York: United Nations Conference on Trade and Development.Google Scholar
  34. Utterback, J. M., & Abernathy, W. J. (1975). A dynamic model of process and product innovation. The International Journal of Management Science, 3(6), 639–656.Google Scholar
  35. Vardi, M. Y. (2010). Globalization and offshoring of software revisited. Communications of the ACM, 53(5), 5.CrossRefGoogle Scholar
  36. Veach, E. (2010). Vecor recycles waste from coal plants into building materials. The Wall Street Journal.Google Scholar
  37. Wooldridge, A. (2010). The world turned upside down – a special report on innovation in emerging markets. The Economist, London,Google Scholar

Copyright information

© Springer International Publishing Switzerland 2017

Authors and Affiliations

  1. 1.Hamburg University of TechnologyHamburgGermany
  2. 2.HQLabs GmbHHamburgGermany

Personalised recommendations