Abstract
In the article, we examine “reverse innovation” from “Copy Cat” point of view; in other words, imitation of advanced technologies by Emerging Country’s Multinational Companies (EMNCs) without legal permission or license agreement from Advanced County’s Multinationals(AMNCs) in some cases. EMNCs imitate AMNCs’ products and services, by using modular design architecture and improve those products to adapt local conditions. Consequently they learn production technology gradually. In such process, they often had violated the intellectual property right (IPR) of AMNCs. EMNCs’ production process is heavily depended on regional industrial accumulation or eco-system of local production. They typically use “open system” and/or module assemble type of production. When EMNCs are expanding into exterritorial zone, they often extend their “informal economy” network which is based on regional ties and blood relations of local community to other regional areas. Invasion of EMNCs into advanced economies sometime arises the friction with the governance system of “formal economy.” In the article, we examine two Chines cases: global expansion of mobile phone manufacturing and commercial transaction through internet. We tried to find out the reasons and the process of “reverse innovation” under the Chinese particular conditions. During the 21th century, the wave of “reverse innovations” by EMNCs will weep toward the shore of advanced economies. In the 21th Century, we will see the “Globalization from Below” while 20th was the age of “Globalization from Above.” We will finally come to realize that our governance system has been challenged by “informal economies” through “reverse innovation.”
