#37 - Ravi Ramamurti : Reverse Innovation Secrets: How Emerging Economies Are Out-Innovating The West

We’re joined by Professor Ravi Ramamurti, founder and director of the Center for Emerging Markets at Northeastern University in Boston, who’s one of the world’s leading experts on innovation in emerging economies.

 

Professor Ramamurti who along with his co-author coined the term ‘reverse innovation’ — the phenomenon where innovation flows not from West to East, but from developing countries upward into wealthier markets. In this wide-ranging conversation, he challenges long-held assumptions about who innovates, how innovation spreads, and what lessons emerging markets are teaching the world.

 

We dive into:

1. How reverse innovation has become a mainstream force, from portable ultrasounds to healthcare delivery models.
2. What made India’s hospitals 90% cheaper than the U.S. while matching quality.
3. The rise of China as a global innovation leader in EVs, solar, AI, and biotech.
4. How internal competition and STEM education give China an edge.
5. What separates emerging market multinationals from their Western counterparts.
6. Why globalization might retreat in the West but accelerate across the Global South.
7. The role of business model innovation, not just technical R&D, in driving growth.
8. What policymakers in emerging economies should focus on to unlock innovation.

This episode is part of the Emerging Market Innovation Series, created in collaboration with Strategic Counsel, and also features Hafidzi Razali, founder and CEO of Strategic Counsel.

 

Key Takeaways from the Episode:

 

1.⁠ ⁠Innovation Is Reversing Direction: Emerging markets are no longer just catching up—they’re now originating impactful innovations that reshape global industries.

 

2.⁠ ⁠Business Model Innovation Matters: From mobile payments to frugal healthcare, the biggest breakthroughs often come not from new tech, but from rethinking cost and access at scale.

 

3.⁠ ⁠China Is Now a Global Innovation Engine: Whether it’s batteries, solar, AI, or pharmaceuticals, China is leading with original ideas—not just copycat models.

 

4.⁠ ⁠Internal Competition Fuels Innovation: China’s provinces, companies, and universities are in constant competition, making it one of the most dynamic innovation ecosystems in the world.