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Assessing the lead market potential of countries for innovation projects

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  • Beise, Marian
  • Cleff, Thomas

Abstract

This paper presents an approach to assessing the potential of countries to lead the global adoption of an innovation and to set a global product or process standard. It can be observed that the specific design of an innovation diffuses worldwide after it has been adopted in a single country. We suggest that there are nation-specific characteristics that increase the likelihood that a locally preferred innovation design will become successful in other countries, too. Once users in a market that has lead market characteristics have adopted a specific innovation design, the possibility increases that users in other countries subsequently adopt it as well. We present a lead market concept for the development of global innovation designs. By focusing on the design of the innovation that responds to the preferences within the lead market, a company can leverage the success experienced in the lead market for a global market launch. In order to follow a lead market strategy of new product development, it is necessary to assess the lead market potential of countries before an innovation is developed and tested in the market. We use an indicator-based methodology that approximates the lead market attributes of countries. The assessment methodology is applied to two innovation projects at the truck division of DaimlerChrysler.

Suggested Citation

  • Beise, Marian & Cleff, Thomas, 2004. "Assessing the lead market potential of countries for innovation projects," Journal of International Management, Elsevier, vol. 10(4), pages 453-477.
  • Handle: RePEc:eee:intman:v:10:y:2004:i:4:p:453-477
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Olga Syraya, 2014. "Mobile Telecommunications and Digital Innovations," EIIW Discussion paper disbei200, Universitätsbibliothek Wuppertal, University Library.
    2. Klaus Rennings & Christian Rammer, 2011. "The Impact of Regulation-Driven Environmental Innovation on Innovation Success and Firm Performance," Industry and Innovation, Taylor & Francis Journals, vol. 18(3), pages 255-283.
    3. Juliana Subtil Lacerda & Jeroen C. J. M. van den Bergh, 2014. "International Diffusion of Renewable Energy Innovations: Lessons from the Lead Markets for Wind Power in China, Germany and USA," Energies, MDPI, Open Access Journal, vol. 7(12), pages 1-28, December.
    4. Levsen, Nils & Herstatt, Cornelius, 2014. "Lead markets in age-based innovations," Working Papers 80, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    5. Ville Valovirta, 2015. "Building capability for public procurement of innovation," Chapters,in: Public Procurement for Innovation, chapter 3, pages 65-86 Edward Elgar Publishing.
    6. Arthur Korus, 2016. "Innovationsorientierte öffentliche Beschaffung und Leitmärkte: Politische Initiativen in der EU," EIIW Discussion paper disbei228, Universitätsbibliothek Wuppertal, University Library.
    7. Jochem, Patrick & Schleich, Joachim, 2011. "Exploring the factors driving automotive exports in OECD countries," Working Papers "Sustainability and Innovation" S4/2011, Fraunhofer Institute for Systems and Innovation Research (ISI).
    8. Hufbauer, Gary Clyde, 2008. "Global governance: old and new issues," Kiel Working Papers 1460, Kiel Institute for the World Economy (IfW).
    9. Vecchiato, Riccardo & Roveda, Claudio, 2014. "Foresight for public procurement and regional innovation policy: The case of Lombardy," Research Policy, Elsevier, vol. 43(2), pages 438-450.
    10. Tiwari, Rajnish & Herstatt, Cornelius, 2012. "India - a lead market for frugal innovations? Extending the lead market theory to emerging economies," Working Papers 67, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    11. Kothari, Tanvi & Lahiri, Somnath, 2012. "Yesterday, today and tomorrow: An overview of research publications in the Journal of International Management," Journal of International Management, Elsevier, vol. 18(1), pages 102-110.
    12. Ingrid Ott & Christian Papilloud & Torben Zülsdorf, 2009. "What Drives Innovation? Causes of and Consequences for Nanotechnologies," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(1), pages 5-26.
    13. Ott, Ingrid & Papilloud, Christian & Zülsdorf, Torben, 2008. "What drives innovation? Causes of and consequences for nanotechnologies," HWWI Research Papers 1-17, Hamburg Institute of International Economics (HWWI).
    14. Jochem, Patrick & Schleich, Joachim, 2012. "Exploring the drivers behind automotive exports in OECD countries: An empirical analysis," Working Papers "Sustainability and Innovation" S3/2012, Fraunhofer Institute for Systems and Innovation Research (ISI).
    15. Steinhilber, Simone & Wells, Peter & Thankappan, Samarthia, 2013. "Socio-technical inertia: Understanding the barriers to electric vehicles," Energy Policy, Elsevier, vol. 60(C), pages 531-539.

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