CATEGORY

�Companies in emerging economies have often competed on low labour cost when it came to exports, or were protected by trade barriers for their home markets. These strategies have their limits: cost competition often becomes a race to the bottom and there are always locations elsewhere in the world that can be even cheaper than you. Moreover the world has moved towards more open competition and trade barriers have become a limited form of protection.

Therefore companies in emerging economies like Indonesia need to learn how to create value through innovation. Innovation is not easy: it is risky and it requires a lot of innovation and creativity, excellent project management, a clear vision, etc.

And there is no guarantee for success. But Indonesia has also an advantage: a large market of lower middle class and bottom of the pyramid consumers that can be a splendid source for innovations for new products, processes or business concepts. We have learned over the last 30 years how to increase our chances for success by better managing the innovation process.

In this book you will find a number of ideas and concepts, which are anchored in the worldwide experience, but which can be adapted to the local Indonesian market. I am sure it will stimulate some companies in Indonesia to take the plunge and become a better innovator.�

(Arnoud De Meyer, Director of Judge Business School at the University of Cambridge,
and Co-author of Inspire to Innovate: Management and Innovation in Asia. Palgrave Macmillan, 2005)