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Managing Innovation in the Service Sector in Emerging Markets
Abstract
Emerging markets are the home to most of the world's population and natural resources and as such are a high priority for both local and multinational companies. Emerging markets present attractive investment opportunities in the service sector. To pursue innovation in the service sector in emerging markets innovation managers need not only have a deep understanding of the core issues and challenges that prevail in this sector but also the understanding of the challenges inherent in these markets institutional, technological and legal and policy environments. The challenges to innovation that the service provider confront in emerging markets are varied; such as the lack of qualified labour, lack of substantial funding, risk to intellectual property and even “expropriation risk,” the possibility that host governments would seize foreign-owned assets. This chapter explores the challenges encountered when managing innovation activities in the service sector in emerging markets.
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