Innovation features strongly on the Knowledge website this month with Peter Williamson's new book on Chinese cost innovation as well as a new study on the innovation value chain. On the site, you'll also find video interviews with Williamson and INSEAD Dean of Faculty Anil Gaba.

Plus, look out for a special edition of the Knowledge newsletter soon, highlighting INSEAD's Leadership Summit which has just been held on the Europe campus in Fontainebleau.

If you have feedback or suggestions, please feel free to contact us.

Stuart Pallister
Editor, INSEAD Knowledge

‘Cost innovation’ sounds like an oxymoron. Most of us associate innovation with greater functionality and sophistication. Mainland Chinese companies, however, are turning conventional business models on their heads and these ‘dragons’ are making inroads into markets in ways that would have been unimaginable just a few years ago.

INSEAD Affiliate Professor of Asian Business and International Management Peter Williamson says Chinese companies are tapping niche markets and customising products, but instead of looking at premium pricing they’re choosing to go mass market with ‘everyday low prices on steroids.’ Read more..

Innovation isn’t all about great ideas. INSEAD Professor of Entrepreneurship Morten Hansen and visiting professor Julian Birkinshaw argue that companies often fail because they don’t recognise that innovation is a chain that requires strength at every link to succeed.

Germany’s merger and acquisition market has been booming. In 2006 there were more than 600 billion euros worth of M&A deals and the ‘frenzy’ has continued into this year. While the media have focused on takeovers involving private equity and venture capitalists, some 70 per cent of all takeovers are undertaken by strategic investors.


According to INSEAD Affiliate Professor of Accounting and Control and Business Law, Jake Cohen, and Jörg Nürnberg, a partner with consultants Dröge & Comp., this M&A activity has opened up a window of opportunity for Asian investors to buy up distressed companies and become part of ‘Germany Inc’, the close-knit network of German companies and banks. Read more..

The ability to assess risk and uncertainty is critical for investment banks and businesses. While some may advocate the use of complex models, INSEAD Dean of Faculty and Professor of Decision Sciences, Anil Gaba, believes that if you’re looking to forecast risk, you’d do well to keep it simple. Read more..

Ten years ago, back in July 1997, the Asian financial crisis ravaged country after country in the region. Starting in Thailand, it spread to Indonesia. Short-term capital pulled out and currencies went into freefall, despite the efforts of central banks. Korea was also badly hit as foreign banks called in loans.

INSEAD Senior Affiliate Professor of International Management Hellmut Schütte believes Asia is still feeling the effects of the crisis to some extent, particularly in the financial services sector in South-east Asia. Read more..