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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.

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  • 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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    14. 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, vol. 7(12), pages 1-28, December.
    15. Rainer Walz, 2006. "Impact of Strategies to Increase Res in Europe on Employment and Competitiveness," Energy & Environment, , vol. 17(6), pages 951-975, November.
    16. Ville Valovirta, 2015. "Building capability for public procurement of innovation," Chapters, in: Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), Public Procurement for Innovation, chapter 3, pages 65-86, Edward Elgar Publishing.
    17. Arthur Korus, 2016. "Innovationsorientierteöffentliche Beschaffung und Leitmärkte: Politische Initiativen in der EU," EIIW Discussion paper disbei228, Universitätsbibliothek Wuppertal, University Library.
    18. 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).
    19. Hufbauer, Gary Clyde, 2008. "Global governance: old and new issues," Kiel Working Papers 1460, Kiel Institute for the World Economy (IfW Kiel).
    20. 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.
    21. 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.
    22. Chang, Sungyong & Park, Sanghyun, 2021. "Borders of Network Effects and Early Internationalization as a Latecomer Strategy," SocArXiv d74he, Center for Open Science.
    23. 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).
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