Journal of Applied Finance & Banking

Evaluating the Potential for Reverse Innovation in BRIC- T Countries: A Panel Data Analysis

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• Abstract

  A reverse innovation or trickle-up innovation is a term referring to an innovation which is likely to be adopted first in the developing world. Reverse innovation is required to be decentralized and focus to local-market. Innovation still originated with home-country needs, but products and services were later modified to win in each market. To meet the budgets of customers in poor countries, they sometimes de-featured existing products. From this point of view, multinationals complete the reverse innovation process by taking the innovations originally chartered for poor countries, adapting them, and scaling them up for worldwide use. In this study, we investigate the impact of reverse innovation on human development. To do this, we used the one-way fixed effect panel data technique. We concluded that increases in the number of researcher, the number of article and research and development expenditure % of GDP have a significantly positively impact on the BRIC-T countries’ the Human Development Index. When analyzing the effects of resident patent applications and nonresident patent applications on education for the selected countries, we found that resident patent applications negatively affect education but nonresident patent applications positively affect it.