What exactly is reverse innovation (also called trickle-up innovation) and who is doing this? I found an article about how General Electric (GE) is changing its innovation strategy to adapt to the recession. Because of the slowing growth in rich nations GE has decided to begin developing products for emerging markets, specifically India and China, later distributing them worldwide.
In 2008, GE developed an electrocardiograph (ECG) machine for doctors in India and China and later added a few new features before introducing it in the U.S. for $2,500, 80% less than similar products. In developing the MAC 800 for the U.S. GE cut their development cost from $2 million to $225,000.
The BusinessWeek article also mentions that Nokia, Xerox, Hewlett-Packard, Microsoft, Nestle, and Proctor & Gamble are seeking ways for them to profit by developing products for emerging markets.
Below are a couple of articles on the topic.