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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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