Innovation for and from emerging countries: a closer look at the antecedents of trickle-down and reverse innovation

Abstract

International new product launch speed is a crucial goal for firms, as it has major implications for their performance. The authors examine whether and how (1) the price and number of attributes of a new product, (2) the number of developed (emerging) countries in which it has been launched, and (3) the nature of the firm that originally launched it (i.e., multinational versus not) affect the new product’s speed of launch from developed countries to emerging ones (i.e., trickle-down) or vice versa (i.e., reverse innovation). In order to test the hypotheses, the authors use data on new product launches in the global packaged food industry in 2001–2014. The results indicate that a lower price accelerates trickle-down, while a higher price and more attributes accelerate reverse innovation. Further, having been launched in more countries and having been launched by a multinational firm both accelerate trickle-down and reverse innovation.