Introduction
Reverse innovation also called trickle-up innovation is a business innovation strategy, which is first used in developing countries before it spreads to industrialized world. In this strategy inexpensive for instance, battery-operated medical instruments are first developed to meet demands of developing nations before they are repacked as low-cost innovative products for the Western customers.
This strategy has proved to bring a revolution in existing business models. For instance, in global health systems, the low-income countries have often offer solutions to both middle and high-income countries. There are a number of ways in which this has been applied like health financing and entrepreneurship, education on control of communicable diseases, health service delivery in rural areas, manufacture of local products, and substitution of skills among others. These strategies are first developed and tested in developing countries and when they proven as effective; the idea is then sold to developed nations. This is an emerging trend in the healthcare fraternity and even the new technologies that are now used in various health facilities went through the same procedure.
Through innovation strategy, the market of products has widened. Most business organizations are now shifting from the old strategy that the best products must be developed in the industrialized world. The industrialized nations are now coming to acceptance that even the less developed nations have the potential to come up with quality world-class products. At the same time developing countries easily accepts products, which are locally made because they perceive as their own. This has led to a broadened market scope to cover people of classes.
Most existing businesses for instance in United States incubate their ideas locally and goes ahead to establish partnership with other organizations in the developing world to implement their ideas. This has enhanced collaboration and friendly working relationships between business institutions of the Western countries and those of Africa or other developing countries. The unfair competition has reduced tremendously.
