One of the undeniable advantages of globalization is that new ideas and technologies can quickly spread across the world. It’s been found that emerging markets that have access to the innovation driven by developed markets drove up productivity by 0.7 percent a year and accounted for 40 percent of productivity gains in individual sectors. Good ideas spread, and globalization lets them spread farther.

Conversely, more time spent with different cultures and their perspectives drive innovation. The American auto industry learned quickly from its Japanese counterparts, for example, and built on their innovation. Seeing challenges from a different perspective is the soul of innovation, and globalization tends to bring more perspectives into the team meeting.

Globalization also presents different challenges that require different forms of innovation. An idea that works in Britain, which has roughly the population of Oregon as of this writing, may not make sense in the United States or may need to be modified. And of course, there are cultural differences; if you make food products, for example, you have to consider what local custom and practice hold as edible. So, what does this mean for your innovation strategy as the 21st century progresses?