Theoretical And Empirical Research On Innovation Processes In Late-Developing Countries

This dissertation looks into a widely debated macro-economic problem i. e. the development pattern of late-developing countries in catching up with the advanced economies of the world. While literature points towards linear development models in this regard, this dissertation questions if it is necessary for late developing countries to follow the learning path that the advanced economies took and hence forever lag behind, or by choosing a different path, they could catch up and even forge ahead. Starting with Porter's "Stages of competitive development model" that lists four development stages for nations i. e. "factor-driven stage", "investment-driven stage", "innovation-driven stage" and "wealth-driven stage", we have drilled down into the field of innovation management to suggest how late developing countries at the "factor-driven stage" can move towards "efficiency-driven stage", while simultaneously making investments towards the "innovation-driven stage" and therefore can attempt to break the linear pattern.Making up for the gap in literature for a comprehensive innovation processes framework, we have built an "innovation processes framework" and a model for quantifying and indexing "quality of innovation processes" that are based on an analysis of best practice studies in New Product Development. We have attempted to prove that an improvement in the quality of innovation processes at the organizational (micro-level) can be an important factor in raising national innovation capacity and competitiveness (macro-level). By evaluating and analyzing 3 main index systems used by the World Economic Forum for measuring national competitiveness, we have built up our case for incorporating "quality of innovation processes" in these measurement systems. The research builds a case around China to look for insights for a non-linear development possibility. We take the 'grounded theory' approach to assess the state of innovation processes in the Chinese Automotive Industry, while also analyzing the evolution of the national innovation systems in China.The research suggests three important insights for breaking the linear development pattern. Firstly, an improvement in the quality of innovation processes can lead to rapid progress and this can be achieved by benchmarking existing processes with globalbest-practices and adapting the learnings within the national context. Secondly, a shift from the 'structuralist' thinking to the 'reconstructionist' thinking is required for endogenous growth and Blue Ocean strategy tools and frameworks can be applied at every level to systematically go for a quantum leap in national progress. Thirdly, a platform based on indigenous innovation that builds up on a nation's core technologies and competencies can lead to independent development and push it towards the"innovation-driven stage".