Asia’s Next Generation of Innovation ....!!!!!!!!!

In Asia's emerging markets, the appetite of youthful populations for connectivity and content is illustrated through tremendous uptake in innovative mobile technologies, but technological development continues to come largely from mature economies such as South Korea and Japan.

How can Asia's tigers develop the right ecosystem so innovation takes root and creates home-grown, cutting edge technologies?

Key Points

• Asia’s demographics, rising Internet penetration and its young techno-savvy population are all fuelling the drive for innovative technologies, products and processes

• Japan, South Korea and Taiwan, China, are at the forefront of the drive, but countries such as China and India are catching up, propelled by the sheer size of the domestic market and the competitiveness of their industries

• Reverse innovation where R&D takes place in Asia and products are sold in developed markets is happening as investments and consumption continue to rise in this part of the world.

• Most new ideas are coming out of small companies and entrepreneurs, but to help them take those ideas to global markets, governments will need to step up with a supportive business environment, including efficient infrastructure, IP protection, funding and tax incentives.

• With the exception of Singapore, ASEAN countries continue to lag behind in innovation and will need to invest a lot more in education as well as create a stable environment for investors and entrepreneurs to lay roots

Synopsis

Japan, South Korea and Taiwan, China, have been leaders in technological developments in Asia but China and India, with youthful demographics and economic growth on their side, are catching up fast. Reverse innovation, where the research and development are carried out in Asia and the products sold in developed Western markets, is also beginning to take place.

Many of the new products and processes being developed are having a profound impact on the daily lives of millions of people. Examples include an e-mobile payment system that helps farmers save a day trip to the market, Tata’s US$ 2,000 car in India and MicroKit, an automated diagnostic system developed in Singapore that can detect diseases from a small sample of body fluid or tissue.

In the past, innovations have tended to emerge from laboratories but today they are as likely to come from small companies employing less than 20 people. Indeed an EU study showed that France has lagged behind in innovation because 85% of its companies employ more than 100 people. Small companies are more focused on innovations, often because they have no choice. The alternative is a prohibitively higher cost of operation, which could threaten their survival. At the same time, the funding cost for new start-ups has dropped considerably making it easier for entrepreneurs with good ideas to get going.

While the US and Europe lead in research innovation, Japan, South Korea and Taiwan, China, have made their mark in product and process innovations.

Most ASEAN countries, with the exception of Singapore and to some extent Malaysia, have a way to go to get in the innovation game. They need to increase investments in education, produce an adequate supply of engineers and create a more conducive business environment..

Happy Reading…..!!!!!!!!!