Different Perspectives on Reverse Innovations

Muhammad Miftah Raf

The term “Reverse Innovation” was popularized by Dartmouth
University professors, Vijay Govindarajan and Chris Trimble, about six
years ago through a book they both wrote titled “Reverse Innovations”.
This is a term for an innovation, such as products and services, that
comes from and used in developing countries before it is then spread to
developed countries. Having this term throughout the world’s business
industry, could be seen as a beneft for the people or it could also be a
disadvantage for the people, depends on the perspective they see
through. In my opinion, there are two kinds of perspectives, frst is from
the amount values of the innovations created and second is from the
utilization based from the needs of each both worlds (developing and
developed).
The frst, the amount values of the innovations. In this perspective,
it could be said that the developing countries are being used by
developed countries just for experiments, testing, and etc. Other than
that, if we see the performance and the prices of the products and/or
services that are exported from the developing countries, the developing
countries are in the disadvantage position, because when they start
selling it to developed countries, the products and/or services
performances is raised into more high-tech performance and the cost is
lowered into half or it could be less than half the price of competing
products around the developing world.
Second, the different way of utilizing the products and/or services in
both worlds. There are of course different ways people live their own life,
and the huge contrast can be seen between people from developing
countries and developed countries. People from developing countries are
more used to live in way harsher lifestyle than people from developed
countries. The connection between this and reverse innovation is that
majority of the people from developing countries don’t really cared about
the performances of the innovations compared to what developed
countries have, as long as the products and/or the services they receive
could sustain the way they’re living their life. Besides that, the prices are
not a big of deal for developing countries residents, because the living
cost in the developing countries is way cheaper, so that they wouldn’t
worry about how much money they earned compared to people from
developed countries.
The conclusion based on my opinion is that “Reverse Innovation” is
a great strategy to make the world’s business industry more successful,
because it made developing and developed countries to work together to
increase consumers all around the world. To make it more successful and
equal to both worlds, the appreciation for the developing countries should
not be less than the developed countries because there, the developing
countries, is where the innovations comes from.