Short answer
When considering international partnerships or market entry, prioritize regions and companies that demonstrate a commitment to fostering genuine innovation capabilities, not just transactional service provision.
- Field
- Innovation & Markets
- Source
- ScholarSpace (University of Hawaii at Manoa) (2008)
- Method
- Literature Review and Case Study Analysis
- Evidence
- Strong effect
Asian economies are actively leveraging innovation offshoring to move beyond low-cost manufacturing and develop their own indigenous innovative capacities. This innovation & markets research insight is drawn from a 2008 study published in ScholarSpace (University of Hawaii at Manoa). Using Literature review and case study analysis, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When considering international partnerships or market entry, prioritize regions and companies that demonstrate a commitment to fostering genuine innovation capabilities, not just transactional service provision.
Strategic Offshoring Drives Asian Innovation Capabilities
Asian economies are actively leveraging innovation offshoring to move beyond low-cost manufacturing and develop their own indigenous innovative capacities.
ScholarSpace (University of Hawaii at Manoa) · 2008
Key Findings
- 01Innovation offshoring is a deliberate strategy for capability building, not just cost reduction.
- 02Asian firms are increasingly engaging in upstream R&D activities, not just downstream manufacturing.
- 03Government policies and institutional frameworks play a significant role in facilitating this upgrading process.
Application
Design takeaway
When considering international partnerships or market entry, prioritize regions and companies that demonstrate a commitment to fostering genuine innovation capabilities, not just transactional service provision.
How to apply
When evaluating potential offshore R&D partners, assess their long-term innovation strategy and their government's support for R&D and technological upgrading.
Project actions
- 01When researching global markets, look for trends in how countries are trying to become more innovative.
- 02Consider how offshoring can be used as a tool for learning and capability building, not just cost-saving.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Highlights a strategic perspective on offshoring beyond cost reduction.
- +Provides a framework for understanding economic upgrading through innovation.
Limitations
The data is from over a decade ago, so current strategies might differ. The focus is on specific Asian regions.
Reliability & validity
The reliability of findings may depend on the depth and breadth of case studies analyzed. Validity is strengthened by the focus on strategic intent and observable economic shifts.
Think critically
To what extent has the 'upgrading through innovation' strategy in Asia continued or evolved since 2008, and what are the implications for Western companies?
Design Principles
"Strategic capability development through international collaboration is a viable pathway to innovation leadership."
This research highlights a critical shift in global innovation dynamics, where developing economies are not just recipients of outsourced work but are strategically positioning themselves to become innovation hubs. Understanding these 'upgrading through innovation' strategies is crucial for businesses and policymakers navigating international markets and R&D collaborations.
What This Means for Your Design
Companies are sending innovation work to Asia not just to save money, but to help Asian countries get better at inventing things themselves, which can create new opportunities.
How to use in your project
- 1.Use this research to justify exploring innovation hubs in Asia for your design project's market analysis or potential collaboration.
Add to My Project
Quick Cite
Paragraph starter
Ernst's (2008) research on innovation offshoring suggests that Asian economies have strategically leveraged international collaborations to move beyond basic manufacturing and cultivate their own indigenous innovative capabilities. This 'upgrading through innovation' approach indicates that offshoring can be a powerful tool for capability development, influencing where and how design projects might seek international partnerships or market entry.
Source
ScholarSpace (University of Hawaii at Manoa)
Innovation offshoring and Asia's 'upgrading through innovation' strategies
journal · 2008
View sourceQuestions About This Research
- What does the research say about strategic offshoring drives asian innovation capabilities?
- When considering international partnerships or market entry, prioritize regions and companies that demonstrate a commitment to fostering genuine innovation capabilities, not just transactional service provision. Evidence: ScholarSpace (University of Hawaii at Manoa) (2008).
- Why does "Strategic Offshoring Drives Asian Innovation Capabilities" matter for design?
- This research highlights a critical shift in global innovation dynamics, where developing economies are not just recipients of outsourced work but are strategically positioning themselves to become innovation hubs. Understanding these 'upgrading through innovation' strategies is crucial for businesses and policymakers navigating international markets and R&D collaborations.
- How can designers apply this research?
- When considering international partnerships or market entry, prioritize regions and companies that demonstrate a commitment to fostering genuine innovation capabilities, not just transactional service provision.
- What were the main findings?
- Innovation offshoring is a deliberate strategy for capability building, not just cost reduction.. Asian firms are increasingly engaging in upstream R&D activities, not just downstream manufacturing.. Government policies and institutional frameworks play a significant role in facilitating this upgrading process.
- What research method was used?
- Literature Review and Case Study Analysis.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2008 journal from ScholarSpace (University of Hawaii at Manoa).
- What should I do differently in my next project?
- When evaluating potential offshore R&D partners, assess their long-term innovation strategy and their government's support for R&D and technological upgrading.
- What are the limitations?
- The research is from 2008, and the landscape of innovation offshoring has evolved significantly since then. The focus is primarily on East Asian economies.