Are developed-market and emerging-market companies gaining ground?

Developed-market companies have filed more patents, but emerging-market companies have been gaining ground rapidly. As the locus of future growth continues to shift to emerging markets, companies across regions should be thinking systematically about strategies for pursuing it.

What is the difference between emerging-market and developed-economy companies?

Emerging-market companies generally serve the needs of fast-growing emerging middle classes around the world with lower-cost products. Developed-economy companies tend to rely more on brand recognition while targeting higher-margin segments, which are relatively smaller and thus less likely to move the needle on the companies’ overall growth rates.

Are emerging-market businesses growing faster from a smaller base?

In essence, emerging-market businesses were growing faster from a smaller base. The smaller base point was true: the average revenue for business units of emerging-economy companies in our sample, at $3 billion, was less than half of the $8 billion size for units from developed-economy companies.