Navigating Protectionism: Strategies for Emerging Markets

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.

5.⁠ ⁠Emerging Market MNCs Start Differently: Unlike Western firms built on tech superiority, EMNCs often scale through local problem-solving, cost innovation, and process excellence.

6.⁠ ⁠Don’t Underestimate South-South Trade: As Western markets close, emerging markets may open up to one another, forming a new kind of globalization led from the Global South.

7.⁠ ⁠Innovation Needs State Support — and Deregulation: Countries need smart deregulation, investment in human capital, and openness to global ideas to create fertile ground for local innovation.

8.⁠ ⁠The AI Era Will Shake Up Everything: Professor Ramamurti shares early thoughts on how AI could redefine software economies like India’s and change the geography of work.

(00:00) - Intro

(01:39) - What is Reverse Innovation?

(02:55) - What sparked Europe’s rise in the 19th century—and is the West now in decline?

(09:35) - Examples of Reverse Innovation

(14:10) - What are some original innovations from emerging economies that led global trends?

(17:01) - Why are business model innovations just as critical as technical breakthroughs?

(18:15) - Is China still reliant on Western education for innovation, or has it built its own R&D ecosystem?

(20:17) - Do emerging economies need to copy before they can truly innovate?

(22:49) - Is local competition between Chinese municipalities driving the country’s innovation boom?

(25:53) - Is China’s tech dominance threatening local industries in Southeast Asia?

(28:01) - What makes emerging market multinationals (EMNCs) different—and potentially better—than Western MNCs?

(30:31) - As labor costs rise, how can China and emerging economies stay competitive in manufacturing?

(32:26) - Can Latin America rise to global tech prominence like China—and what stands in its way?

(34:06) - Are Latin American governments investing in local innovation like East Asian state-owned giants do?

(35:41) - What should emerging market policymakers do to spark innovation and global competitiveness?

(37:38) - How should emerging markets innovate in a world moving away from globalization and free trade?

(40:37) - Is globalization making rich countries lose their edge while manufacturing hubs gain design power?

(43:38) - What groundbreaking research is coming out of the Center for Emerging Market Studies at Northeastern University?

(45:52) - Outro

Join us for a powerful and myth-busting discussion with Professor Ravi Ramamurti as we explore the next chapter of global innovation from the perspective of the rising world.

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