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    ACKNOWLEDGEMENT

    In preparation of this report, which is entitled Internationalization & Innovation,

    there are several issues that I have encountered such as limitations on information and lack of

    resources. However, I am very thankful to Allah, my own beloved parents, family members

    and friends for their constant encouraement without which this assinment would not be

    possible to finish.

    !urthermore, with a help from my own wise lecturer, "ir Ammar Amierul and my

    fellow colleaues, I have manaed to overcome the problems easily. #hus, I would like to

    take this opportunity to e$press my profound ratitude and deep reards to my lecturer, for

    his e$emplary uidance, monitorin and constant encouraement throuhout the course of

    this report. %esides that, I would also like to take this opportunity to e$press a deep sense of

    ratitude to my fellow classmates for their cordial support, valuable information and

    uidance, which helped me in completin this task throuh various staes.

    #hese people have helped me to et throuh a lot of barriers and without them this

    proect could not have reached this stae. Hence, once aain I would like to thank all of them

    very much for their full support.

    Table of Content

    1

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    Content Page

    Introduction '

    (.) Internationalization of a *hinese +born local brand in a forein sector-

    the case study of ood%aby

    (./ oodbaby- History, brands, and main achievements

    (.( A competitive analysis of the baby strollers sector in *hina

    (.0 Interviews with customers

    (.' !indin

    (.1 !uture 2esearch

    (.3 *omments

    4

    4

    //

    /0

    /0

    /'

    /'

    0.) reen rowth and technoloical innovation- A case for "outh Asian

    countries

    0./ #echnoloical innovations and Intellectual 5roperty 2iht

    0.( #echnoloical innovations and 2esearch and 6evelopment

    7$penditure

    0.0 #echnoloical innovations and reen #a$es

    0.' !indin

    0.3 *omments

    '.) Interation of Ideas- #echnoloical Innovations and Internationalization

    /1

    /1

    /3

    /4

    /8

    /9

    ()

    1.) *onclusion (/

    2

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    2eferences

    ((

    1.0 Introducton

    3

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    TITLE

    Internationalization of

    a *hinese :%orn local: %rand

    in a !orein

    "ector- #he case study of

    ood%aby.

    reen rowth and

    #echnoloical Innovation-

    A case for "outh Asian

    countries.

    A!T"O#

    !rancesca *hecchinato, ;ala

    Hu, Alessandra 5erri & #iziano

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    market

    2@(- In order to compete with

    international brands in the local

    market, do the features of

    lobal brands affect *hinese

    brands :oin lobal:

    strateies

    2@(- Are 2esearch and

    6evelopment >2&6?

    7$penditures continued to

    demonstrate an increasinly

    sinificant role in patentin of

    reen technoloies

    2@0- 6oes environmental

    ta$ation plays a fundamental

    role in introducin and

    developin the innovative

    reen technoloies

    #E'EA#C"

    MET"ODOLOG$

    =i$ed =ethod

    /. !irst phase-

    Analyzin oodbaby

    companys profile, history, and

    internationalization activities

    by usin first and secondary

    data.

    (. "econd phase-

    =ade a competitive analysis of

    the strollers brands in the

    *hinese market in

    order to have an overview of

    the sector, demonstrate the

    internationalization

    characters of the brand, anddefine its positionin.

    0. #hird phase-

    5reparin and administerin a

    multiple choice Buestionnaire

    for consumers to

    analyze oodbabys brand

    awareness and purchase rate,

    as well as the product

    @ualitative =ethod

    %y usin secondary sources,

    the information has been

    collected from all the related

    oranizations in "outh Asia,

    which are directly or indirectly

    related to the reen rowth

    developmental aenda induced

    by I52s, 2&6, and

    7nvironmental #a$ation.

    5

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    variables and influencers role

    in the strollers purchase.

    )A#IA&LE'+DIMEN'ION'

    /. @uantitative

    6ependent variable-

    "trollers purchase

    Independent variable-

    %rand awareness, purchase

    rate, products variable &influencer role.

    (. @ualitative

    i. oodbaby marketin and

    brandin strateies.

    ii. lobal brand features in

    affectin oodbaby +oin

    lobal strateies.

    /. Intellectual 5roperty 2iht

    I52s increase the

    awareness and

    knowlede, and then

    are able to promote the

    technoloical

    innovation.

    (. 2esearch and 6evelopment

    7$penditure

    2esearch and

    development introduce

    the new knowlede ofproduction and the

    method of technoloical

    chane.

    0. 7nvironmental #a$ation

    7nvironmental ta$es are

    the vital policyinstruments to decrease

    the environmental

    damaes.

    lobalization toether with the reduction in trade barriers and tariff provide the

    opportunity for business firms to e$pand their business into forein markets, even on the first

    day of its establishment. 6ue to this phenomena, business firms rapidly e$pand their business

    by penetrate into new markets abroad. #he term internationalization is used to define such

    6

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    activity that could be seen in the business world today. #here are various definitions of

    internationalization were bein used by researches and it varies dependin on the interest and

    phenomenon of the study. Cne of the most applied theories of market internationalization is

    represented by the internalization theory of %uckley and *asson >/943?, which conceives the

    firm as an internalized bundle of resources. #hese resources can be allocated between product

    roups, and between national markets, reducin transaction costs and ma$imizin profits.

    6unnin >/988? identified three necessary conditions for firms to be willin to

    undertake investments abroad- the ownership advantae >derived from e$tendin the e$istin

    proprietary assets abroad, such as brands and proprietary technoloies?, the location

    advantae >resultin from the forein countrys superior market or production opportunities

    in terms of costs?, and the internalization advantae >maintainin the core competences of the

    firm within the firms boundaries?. #hese advantaes constitute the :C;I framework: or

    :eclectic paradim: of international production.

    !urthermore, business firm needs to develop their own new innovation to stay

    compete in the real business world. Innovation could be defined as, a new idea, device or

    process. Innovation can be viewed as the application of better solutions that meet new

    reBuirements and market needs. #his is accomplished throuh more effective products,

    processes, services, technoloies, or ideas that are readily available to markets, overnments

    and society. #he term innovation can be defined as somethin oriinal and, as a conseBuence,

    new, that :breaks into: the market or society. In other words, innovation is the process of

    translatin an idea or invention into a oods or services that creates value or for which

    customers will pay.

    %y the end of the /99)s, there has been a sinificant worldwide increase in

    technoloical innovation, spurred on by a number of factors, but mostly the ease at which

    information has been made available due to advances in the internet. Access to technoloy is

    ust as important as the invention aspect of innovation for all the countries to develop and

    row. 6evelopin countries often face a multitude of issues, therefore, diffusion of reen

    technoloies is especially important for addressin lobal environmental issues >Dorld %ank,

    ()/(? and the most effective and efficient solution is to turn towards technoloical

    innovation. #here is a dire need to foster the technoloical innovation in developin countries

    that will facilitate the transition to less carbon intensive economies to address the reen

    rowth.

    7

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    In this report, we shall discuss on the topic of the importance of innovation towards

    *hinese firm as a vessels to internationalize their business throuh certain effective and

    efficient strateies.

    ,.0 Internatonal-aton of a Cne/e born glocal brand n a foregn /ector2 te ca/e

    /tud3 of Good&ab3

    ,.1 Goodbab32 "/tor34 brand/4 and 5an ace6e5ent/

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    #he foundation of oodbaby *ompany starts in the year of /989 by "on

    Ehenhuan in which he desined a childrenFs :push and rock: stroller and launched

    :oodbaby: >::, pronounced :hao haizi:, literally means :ood baby:?

    brand in Gunshan, iansu 5rovince.

    7ven thouh "on did not have any relevant business e$perience, he was able

    to identify a shift in the children products market. #herefore, he thouht that the

    factory should make finished products and decided to desin a stroller himself. #he

    product he invented was not only a stroller, in fact its wheels could be folded in to

    become a rockin chair and dinin chair. In /99) the company was ranted a /)year

    patent in *hina for the :push and rock: stroller and soon after, oodbaby established

    its leadership in the local market, rankin number one in strollers sales in /990. In

    mid/99)s the company started its international e$pansion- first, in /991 durin a

    trade fair in 6allas they established contact with *osco, an American company part of

    6orel roup. 6orel is a leadin *anadian player in the uvenile sector, which is

    proprietary of lobal stroller brands such as @uinny, =a$i*osi, and "afety !irst. #he

    active collaboration with 6orel started in /993- since that year oodbaby has

    produced strollers for the American market under local brand names, as :oodbaby:

    was not perceived as effective enouh in the American culture >:eoby: brand wasused as alternative, but it was soon replaced?. #hanks to the collaboration with 6orel,

    oodbaby also entered the *anadian market and later the 7uropean one in ())(. In

    7urope oodbaby has also built relationships with 5lay and "ilver *ross, respectively

    for the "panish and 7nlish markets.

    "ince the establishment of the company, oodbaby roup invested on 2&6

    centers in *hina and abroad, aimin to build a comprehensive lobal 2&6 system,

    composed by five 2&6 centers with more than 00) professional 2&6 and desin

    enineerin staff located in Gunshan, Hon Gon >toy division?, %oston, Amsterdam,

    and #okyo.

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    !iure /

    In ()/), oodbaby decided to update its brand imae, by chanin its loo

    >!iure /? and creatin a new brand frameworkdue to a more competitive market

    caused by an increasin presence of international competitors. #he new desin was

    developed by %einstudio, which chaned the loo by makin it more modern. #he

    name was shortened into the initials :b:, therefore it can be used to indicate other

    names different than :ood baby:. !our brand values were defined >safety, durable

    Buality, modern fashion, and love?, and with accordance to the loo and brand values,

    the payoff unified *hinese and 7nlish te$ts- : with love from b: >:

    : translation is :;et love embrace you:?. 6urin our interview with the

    assistant to president, he declared that for oodbaby *hina represents the most

    competitive market due to two main reasons-

    J It is not a uniBue market, but an international one, in fact different products

    need to be developed dependin on their eoraphic area >the "outhern part is more

    similar to apan, where there is a hiher demand for liht strollers, whereas the

    Korthern part is similar to 2ussia, in fact heavy and thicker strollers are more

    common?L

    J #he *hinese distribution system is very comple$, in fact contracts need to be

    neotiated with distributors for different areas. #herefore, oodbaby has established

    01 sales branches in *hina and developed a wide distribution network that covers

    more than 1,))) points of sale, includin /,))) monobrand stores.

    oodbaby manae to established cooperative relationships with 0(

    international distributors and 8( brand owners. It sells its products under the :b:

    brand in apan and 2ussia, whereas in the Mnited "tates and 7urope local brands are

    used. Its products occupy '/.(N, 0'./N, and /3.'N of the market share respectively

    in *hina, Mnited "tates, and 7urope.

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    ,., A co57ett6e anal3// of te bab3 /troller/ /ector n Cna

    In order to analyze the price of strollers with the sample, an averae price of

    /,('/.4' 2=% oodbaby is positioned low >below the mean, which is (,'((.89

    2=%? like the other *hinese brands. %ut comparin the price only with *hinese

    brands, its price is the hihest one >7$hibit /?. In addition, oodbaby has a wide

    variety of products >i.e. number of cateories?, satisfyin the maority of the needs in

    baby carryin. #he only competitor with a similar stratey is *ombi, a apanbased

    company with subsidiaries in many countries. #his is also confirmed by the data

    athered durin the interview with oodbabys manaer.

    >7$hibit /?

    #o o deeper with the assortment strateies analysis, the width and the depth

    >number of different strollers each brand offers? of the product variety werecompared. oodbaby occupies a distinctive position >7$hibit (? as it is present in

    most of the baby products cateories and has the deepest variety of products. It is

    followed by Happy 6ino, which is a brand of the same roup. Cnce aain, *ombi is

    the main competitor.

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    7$hibit (

    =ovin towards distribution part, the most distributed brand is oodbaby,

    whose products are sold in more than 1,))) points of sale >includin /,))) mono

    brand stores?, followed by "tokke with /40 stores >no information related to their

    format?, *hicco >/)1 monobrand stores?, and Eooper >/)1 specialized stores?. #he

    main competitor *ombi declares to have 10 monobrand stores.

    %rands 5resence in the #op 1 7commerce websites

    %rita$ O 2omer, *hicco, *ombi, *oncord,

    7asywalker ,oodbaby, raco, Happy 6ino,

    Giddy, @uinny

    1

    Aprica, !atone, oie, "eebaby, Eooper '

    Inlesina, 'moms 0

    Aillia, "tokke, M55Ababy (

    %uaboo /

    ,.8 Inter6e9/ 9t cu/to5er/

    Accordin to the case study conducted, oodbaby is the most purchased brand

    with 0/./9N of preferences, followed by *ombi with a rate of /3.80N, raco

    >4.'0N?, and Aprica >'.91N? >#able 0?. It has to be noted that the top five brands,

    with the e$ception of oodbaby, are all forein, whereas all *hinese brands purchase

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    rates are very low. In addition, oodbaby is also the preferred brand in the pre

    purchase phase- (8.4'N of our sample planned to buy a oodbaby stroller, aain it is

    followed by *ombi with /0.49N of preferences, and raco >8.)1N?.

    %rand Ko. of purchased strollers N of purchased strollers

    oodbaby 30 0/./9N

    *ombi 0' /3.80N

    raco /1 4.'0N

    Aprica /) '.91N

    @uinny 8 0.93N

    ,.: %ndng

    oodbaby acts as an international brand in a wide national market, a new way

    to become lobal that could be an e$ample of internationalization process operated by

    *hinese brands. In this sample, oodbaby is the first of the five most purchased

    brands and it is the only *hinese one, whereas all the other local brands belon to low

    costlow Buality competitive roups with absolutely marinal market shares.Cbviously, this situation can be read as a stron preparation phase in order to

    massively enter international markets. Answerin to 2@/, the researchers said that

    international and lobal companies influence *hinese ones as a benchmark, however

    this is true only for the e$cellent ones that aim to compete with a lobal attitude

    within the lobal market. Answerin to 2@(, the local market toether with the

    international competition create an environment where *hinese companies that want

    to emere from a marinal role are pushed to :o lobal:, by ainin the features of

    lobal brands- Buality >at least :oodenouh:?, a brand with an international

    soundin name and loo, marketin alliances with forein partners, and lare

    investments in 2&6. In addition, they have found that to be a leader, a link with its

    own country is important, too. !irst, oodbaby has ained social reconition thanks

    to its many awards received by *hinese institutions. #hen, only in a second phase of

    its success, it updated its loo in order to be perceived as more modern, chanin the

    brand framework but maintainin the oriinal ideorams.

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    ,.; %uture #e/earc

    !uture research could incorporate an analysis of the internationalization

    strateies and the forein direct investments data of oodbaby abroad. In addition, the

    implications of different *hinese industry settins could be considered in order to

    increase the eneralizability of our findins. Pet, case studies do not have

    eneralization as their main obective, bein rather aimed at describin specific

    phenomena that e$tant literature has not completely e$plained yet.

    ,.< Co55ent/

    In my opinion, oodbabys history reflects the steps undertaken by other

    *hinese firms and 7==K7s- its internationalization process was necessary since the

    companys foundation in order to ain the resources and knowhow it did not have the

    adeBuate access before. #herefore, the internationalization e$pansion was initiated in

    a bi market such as the Mnited "tates, where they established partnerships and

    strateic alliances that provided oodbaby with the conditions to become the first

    strollers brand in *hina and a leadin stroller manufacturer in the world. #akin

    Haier as e$ample, oodbabys success is also built on its competitive advantae of

    bein more fle$ible, faster, and closer to *hinese customers than the competitors.

    =oreover, the value of their offer in the perception of the customers is enhanced when

    local companies become lobal and create an international imae.

    8.0 Green Gro9t and Tecnologcal Inno6aton2 A ca/e for 'out A/an Countre/

    8.1 Tecnologcal nno6aton/ and Intellectual Pro7ert3 #gt

    In "outh Asian countries, there is a focus on Intellectual 5roperty 2ihts to

    access the environmental protection technoloies. 6ay by day this trend is drawin

    much attention, and I52s are important to access these technoloies. In developin

    countries especially in "outh Asia, the enforcement of Intellectual 5roperty 2ihts

    increases the lobal competition in reen technoloical innovation. Pet, technoloical

    innovations strenthen the I52s and speed up the process of technoloical innovationand development. I52s are an interal tool to achieve the technoloical innovation.

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    6espite this, the level of I52s protection in "outh Asian countries is very low as

    compared to developed countries. 6ue to weaker protection of I52s, very few

    inventions are marketed in these countries and most of industries rely on pirated

    technoloies. #he followin raph shows the situation of Intellectual 5roperty 2ihts

    in "outh Asian countries.

    #his raph clearly shows that the enforcement of Intellectual 5roperty 2ihts

    is very weak in "outh Asian countries as compared to the developed ones. India and

    "ri ;anka had somehow better in I52s enforcement compared to %anladesh and

    5akistan. %ecause of no incentives for advanced technoloies in these countries, the

    number of inventions is less. #his situation has iven rise to many challenes in the

    way of achievin reen rowth in "outh Asian countries.

    ;ookin at the sinificance of patentin reen technoloy, Intellectual

    5roperty 2ihts >I52s? is an interal tool to foster innovations in developin countrieswithin "outh Asia. As the reion itself is severely deprived of advanced eBuipment, an

    effective I52s system would provide the necessary incentives to adopt the risks for

    considerin new technoloy. #he initiation of I52s in "outh Asian countries would

    encourae costeffective e$port, forein investment, technoloy transfer and

    innovative products. #his mechanism will benefit both the relevant developers alon

    with their consumers and above all provide access to innovative reen technoloies.

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    8., Tecnologcal nno6aton/ and #e/earc and De6elo75ent E=7endture

    2esearch and 6evelopment >2&6? 7$penditures play a sinificant and

    positive role in innovative technoloies. #he emphasis of 2&6 7$penditures

    enerally and reen 2&6 7$penditures specifically are important for technoloical

    innovation. Kew research and development introduce the new knowlede of

    production and the method of technoloical chane. #hrouh this developin

    countries reduced the emissions and produced the efficient technoloies. "ome

    countries like "outh Asian countries have limited 2&6 7$penditures and thats why

    their innovative capabilities are very low as compared to the developed countries.

    It is evident that 2&6 7$penditure and patent applications have a positive and

    sinificant role to foster the technoloical innovation because a patent is taken for

    preventin information theft. 5atent is a protection iven to an invention and the

    number of patent applications demonstrate the performance of countries, reions,

    enterprises and technoloy centres in the field of innovation. #he fiure below

    compares the patent filins with 2esearch and 6evelopment 7$penditure. #otal

    research and development is slow in constant year >()))? M" dollars at the purchasin

    power parity. #his is a meaninful crosscountry comparison by weihtin the number

    of patents while takin different measures of economic activity and country size.

    #he 2esearch and 6evelopment >2&6? 7$penditures continue to demonstrate

    an increasinly sinificant role in patentin of reen technoloies. #he emphasis of

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    reen 2&6 7$penditures enerally is imperative for innovative reen technoloies.

    #hese e$penditures foster the commercialization of new innovative technoloies and

    successfully reduce the environmental pollution. *onseBuently, production of

    environmentfriendly oods would improve, ensurin sustainable development. #hese

    products would also be helpful in minimizin deradation.

    8.8 Tecnologcal nno6aton/ and Green Ta=e/

    #he environmental ta$ation plays a sinificant and positive role to raise

    technoloical innovations. In international market, developin countries, like "outh

    Asian countries, have to face touh competition due to the imposition of reen ta$es.

    reen ta$ would damae the competitiveness of the domestic industry. ;ocal produce

    may also affect due to this. Dith the imposition of reen ta$ on industries the cost of

    subect increases. 6evelopin countries like India, 5akistan, %anladesh and "ri

    ;anka are not in a position to bear the e$tra cost of production, as it affects its

    e$ports. Cn the other hand, it is a fact that these countries lack hih environmental

    standards. #his is the reason why imposition of reen ta$es is not applicable in

    developin countries. "till its importance cannot be inored because throuh this

    revenues increased, pollution is reduced.

    7nvironmental ta$ation plays a fundamental role in introducin anddevelopin the innovative reen technoloies. Mnlike other costly instruments such as

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    tradable permits, and environment related ta$es introduce a complete rane of

    innovation and new production techniBues. Dith prospect for the overnment to

    enerate colossal revenue from the environmental ta$ation, they would be able to

    e$ercise publicprivate partnership and use it for further reen 2&6 7$penditures.

    8.: %ndng/

    #he initiation of I52s in "outh Asian countries would encourae costeffective

    e$port, forein investment, technoloy transfer and innovative production. #his

    mechanism will benefit both the relevant developers alon with their consumers and

    above all provide access to innovative reen technoloies >%IA*, ()/(?. As a result

    of the low protection of I52s, the study identifies various challenes related to few

    inventions and lack of incentives in the reion to attain reen rowth. #he

    emphasis of reen 2&6 7$penditures enerally is imperative for innovative reen

    technoloies >C7*6, ())9?. #hese e$penditures foster the commercialization of new

    innovative technoloies and successfully reduce the environmental pollution.

    *onseBuently, production of environmentfriendly oods would improve, ensurin

    sustainable development. #hese products would also be helpful in minimizinderadation. #his study indicates that "outh Asian countries have a very limited 2&6

    base and a low level of invention and innovative capabilities as compared to

    developed countries. 7nvironmental ta$ation plays a fundamental role in introducin

    and developin the innovative reen technoloies. Mnlike other costly instruments

    such as tradable permits, environment related ta$es introduce a complete rane of

    innovation and new production techniBues. Dith prospect for the overnment to

    enerate revenue from the environmental ta$ation, they would be able to e$ercise

    publicprivate partnership and use it for further reen 2&6 7$penditures.

    8.; Co55ent/

    #he study illustrates the reen rowth perspective of "outh Asia to address the

    Buestion of achievin sustainable reen rowth in the conte$t of technoloical

    innovation. #he reason is that "outh Asian countries are in the process of establishin

    their infrastructure, transport and enery systems. "o, it is time to innovate and

    uprade the knowlede, skills and technoloies towards reen solutions from the

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    outset. However, it is necessary to know the benefits of reen rowth and what can

    reen rowth brins for "outh Asian countries. 5recisely, access to technoloy is ust

    as important as the invention aspect of innovation for all the countries to develop and

    row.

    :.0 Integraton of Idea/2 Tecnologcal nno6aton/ and Internatonal-aton

    7$pansion in market size has positive dynamics in innovative knowlede and

    activities. #he reason the market e$pansion is important is industrial rowth, which leads to

    new invention and technoloical innovations by achievin the economies of scale. Dhen

    demand of reen products increases in the market, then 2esearch and 6evelopment

    7$penditures increase too. As a result, the structure of firms, industries and markets is

    chaned. #his situation may lead to invention and innovations and then reen technoloies

    are automatically increased.

    In *hina, the pollution rates are considered at the most e$treme level and the

    overnment have taken several measures in order to curb the problem. However, in some

    developin Asian countries, reen ta$es are imposed and it affect the firm performance

    because they have to control the amount of production and bear the additional cost in order

    for them to o reen. #hus, encourain the emerin firms to practice reen technoloy is

    one of the best ways to solve the problems and enhance the technical functionin of itsproduction, process and finished products. !urthermore, the *hinese emerin firm can ain

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    advantae from the reen rowth practice as this will attract more interests from abroad to

    build up collaboration and several capabilities in the form of new development and

    operations. Dith the development capability, the *hinese firm could internationalize by

    e$ploitin into many countries because they could develop reen products especially for the

    country that practice the usin of friendly environmental products. As for the operational

    level, if the *hinese have a hih operations capability in reen technoloy, the manaers can

    internationalize by usin their e$perience which would result in developin a new process for

    their firms.

    #he world is rapidly rowin due to the lobalization and technoloical advancement.

    !irm who intend to compete in international market should take innovative ways in terms of

    I52 and research and development because the international markets are much more

    competitive and rapidly evolvin.

    ;.0 Conclu/on

    In conclusion, oodbabys history reflects the steps undertaken by other *hinese

    firms and 7==K7s- its internationalization process was necessary since the companys

    foundation in order to ain the resources and knowhow it did not have the adeBuate access

    before. #herefore, the internationalization e$pansion was initiated in a bi market such as the

    Mnited "tates, where they established partnerships and strateic alliances that provided

    oodbaby with the conditions to become the first strollers brand in *hina and a leadin

    stroller manufacturer in the world.

    !rom my opinion, the 7==K7s successful internationalization processes start from

    domestic market. #hey need to establish a stron base local market before they bein

    penetratin in the international market.Advantaes are related to a hiher competitiveness of

    7==K7s in the home market as they have a better knowlede of the clients, the distribution

    channel and the institutional environment, considerin the *hinese firms, they prefer oin

    abroad throuh acBuisition and oranic rowth as they miht want to reduce the psychic

    distance.

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    #he world is rapidly rowin due to the lobalization and technoloical advancement.

    #hus, it is crucial for business firms to be innovative and adapt to current situation. #hese two

    factors are really important, especially for the firms that want to stay compete in the

    international market. If the firm manae to o lobal by usin one of the internationalization

    method that have been suested above, they still need to be innovative because the

    international markets is much more competitive and rapidly evolvin.

    #echnoloical innovation, which focuses on increasin efficiency and reducin waste

    is crucial to increase productivity and reduce its impact on environment. #herefore,

    e$ponential reen rowth is ne$t to impossible without technoloical innovation. %oth

    internationalization and innovation plays an important role in the lifecycle of a business

    firms. #hese two factors are some of the main element that would enables the business firms

    to stay competitive for a lon period of time throuhout their e$istence in the world market.

    #here is a dire need to foster the technoloical innovation in developin countries that

    will facilitate the transition to less carbon intensive economies to address the reen rowth.

    #his proves that innovation in terms of reen rowth is really important for business firms to

    stay competitive and stand tall in their own industry. Dithout innovation, a business firm that

    oes abroad miht not be able to survive for a lonterm.

    #eference/

    !rancesca *hecchinato, ;ala Hu, et al. >()/0?, Internationalization of a *hinese %orn

    local %rand in a !orein "ector- #he *ase "tudy of oodbaby.

    =anzoor 2abia & "hakeel A.2. >()/0?, reen rowth and #echnoloical Innovation-

    A case for "outh Asian *ountries.

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