Townsend makes a good point:
So why can’t a company like GE follow down this path with “open reverse innovation”
– inviting small companies in India and China to submit their products,
services and ideas to be evaluated by GE for global distribution. Of
course, the open model would require an environment of trust –
but what better way to create goodwill in new markets than to be seen
as a development partner in the China, India, and resource-starved
Africa? A.G. Lafley sits on GE’s board; surely he could help them get started.
Townsend also proposes the formation of innovation collaboratives funded by companies like GE to create a pipeline of new products for GE.
Not a bad idea, if you consider that a recent
McKinsey survey found that 20% of companies have opened up their
innovation processes to employees and customers and they report a 20%
rise in the number of innovations, on average.