Global innovation networks

Our global innovation networks service offering enables clients to design, build and optimize innovation on a global scale through the creation of innovation networks that combine R&D, market intelligence, and local talent and resources.

Large manufacturing companies have long headed offshore to reap the benefits of lower labor costs and closer contact with local markets. Now, companies of all kinds are applying that same principle to their innovation efforts, leveraging lower costs, local talent and worldwide markets to improve efficiency and effectiveness. The benefits are clear: according to our 2008 Global Innovation 1000 study, companies that deployed more than 60 percent of their R&D outside their home countries tended to have better operating margins, total shareholder return, market cap growth and return on assets than their rivals.

A global knowledge economy is emerging in which the winners will be those who can successfully manage a global network of partners with access to technology, capabilities and local market understanding.Strategy& can help companies develop a global innovation program that can reduce costs while taking advantage of the talent and resources available in local markets throughout the world.

Our thought leadership

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As business becomes increasingly global, corporate innovation strategies are becoming more global as well: Multinational companies are spending a significant — and growing — share of their research and development money outside the countries in which they are headquartered.
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For companies that want to build a global growth engine, offshoring innovation is both a challenge and a necessity.
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A study finds that organizations benefit when they configure their innovation networks for cost and manage them for value.

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Client examples

We guided the creation of a new joint venture between a Tier I auto supplier and an Indian engineering services firm.
A Tier I auto supplier needed a strategy for building offshore product development and engineering capabilities to capture opportunities in Asian markets.
New front-end innovation processes led to greater prospects for growth at this automated equipment company.
This top auto supplier boosted product cycle time and quality through a rationalized global product development process.