[ APPENDIX TWO ]
Knowledge Is Increasingly Dispersed
Most of the knowledge needed for innovation could once be found in or close to a company’s primary markets. Now it is increasingly dispersed and diverse. Among the many forces driving this knowledge dispersion, we have identified five radical shifts that occurred progressively over the past three decades or are currently under way, and have led to greater knowledge diffusion and diversity: (1) globalization and the opening of new consumer markets; (2) increasing technological complexity and convergence; (3) demographic changes; (4) greater external pressures and, in particular, environmental concerns; and (5) offshore outposts and outsourcing.
India and China are rarely ...