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Assessing the Lead Market Potential of Countries for Innovation Projects

  • Marian Beise

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Thomas Cleff

    (Pforzheim University of Applied Scienses, Germany)

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    This paper presents an approach to assessing the potential of countries to increase the likelihood that locally preferred innovation designs become successful in other countries, too. The concept suggests that for many innovations lead markets exist that initiate the international diffusion of a specific design of an innovation. Once a specific innovation design has been adopted by users in the lead market chances are that it subsequently becomes adopted by users in other countries as well. Lead markets can be utilised for the development of global innovation designs. By focusing on the design of the innovation which responds to the preferences within the lead market, a company can leverage the success experienced in the lead market for 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. This paper presents an indicator-based methodology that approximates the lead market attributes of countries. This assessment methodology was applied to two innovation projects at the truck division of DaimlerChrysler AG. The method produces information that is of importance for the development phase and the market launch of globally standardised innovations.

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    File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp142.pdf
    File Function: First version, 2003
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    Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 142.

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    Length: 37 pages
    Date of creation: Sep 2003
    Date of revision:
    Handle: RePEc:kob:dpaper:142
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    1. Dekimpe, M.G. & Parker, P.M. & Sarvary, M., 1997. ""Globalization": Modeling Technology Adoption Timing Across Countries," INSEAD 97/75, INSEAD, Centre for the Management of Environmental Resources. The European Institute of Business Administration..
    2. Swan, Philip L, 1973. "The International Diffusion of an Innovation," Journal of Industrial Economics, Wiley Blackwell, vol. 22(1), pages 61-69, September.
    3. Antonelli, Cristiano, 1986. "The international diffusion of new information technologies," Research Policy, Elsevier, vol. 15(3), pages 139-147, June.
    4. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-67, November.
    5. Rennings, Klaus & Beise, Marian, 2003. "Lead Markets of Environmental Innovations: A Framework for Innovation and Environmental Economics," ZEW Discussion Papers 03-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    7. Mariko Sakakibara & Michael E. Porter, 2001. "Competing At Home To Win Abroad: Evidence From Japanese Industry," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 310-322, May.
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