In today’s competitive world, innovation is not just an advantage but a necessity for business success. According to the World Economic Forum, more than 85% of globally successful companies consider innovation a key factor in their growth and development. However, having an innovative idea alone is not enough; the idea must be properly developed, introduced to the market, and transformed into an influential global brand.
Entering the global market comes with numerous challenges. According to McKinsey Institute statistics, only 25% of startups that begin with innovative ideas manage to achieve international success in less than five years. This highlights the fact that turning innovation into a global brand requires not only creativity but also well-defined strategies and their precise execution.
Several factors contribute to the success of a global brand, including a deep understanding of the target market, creating unique value, using cutting-edge technologies, and utilizing digital marketing strategies. According to a report by Statista, the global branding and digital advertising market is projected to exceed $787 billion by 2025, underscoring the significance of this field in the growth of international brands.
In this article, we will explore key strategies for transforming innovation into a global brand and demonstrate how adopting the right approaches can lead to international success.
The Concept of Commercialization and Its Importance
Commercialization is the process by which an idea, innovation, or new technology is transformed into a marketable product or service. This process not only involves product develop
ment but also includes market assessment, business model design, marketing and distribution strategies, and financial planning. In simple terms, commercialization refers to the transfer of innovation from the research and development (R&D) stage to the real market and the creation of economic value from it.
The importance of commercialization can be seen in its impact on economic growth, job creation, technological development, and increasing the competitiveness of companies and countries. Companies that successfully commercialize their innovations not only earn more revenue but also strengthen their competitive position in the market and gain a larger market share. According to a World Bank report, companies that successfully implement the commercialization process experience an average of 25% higher annual revenue growth compared to their competitors.
One of the main reasons for the failure of innovative projects is the inability to commercialize successfully. Research has shown that over 90% of startups fail due to product-market misalignment, financial issues, and lack of a proper strategy for market entry. Therefore, having a comprehensive and scalable commercialization plan can significantly increase the chances of success for an innovation.
Additionally, on a macroeconomic level, countries with effective commercialization strategies perform better in global innovation indices and experience more sustainable economic growth. For example, the United States and Germany, due to their supportive policies for technology commercialization and investment in innovation ecosystems, have been able to capture a significant share of global advanced technology markets in recent years. These countries support the commercialization of innovative ideas by creating technology parks, incubators, and innovation accelerators, providing more opportunities for entrepreneurs and knowledge-based companies.
As a result, commercialization not only helps companies profit from their innovations, but also assists the economy of countries in achieving sustainable growth, job creation, and industrial development.
Scalable Startups and Their Characteristics
Scalable startups are businesses whose business model is designed in such a way that it can grow and expand with an increasing number of users or customers without a significant increase in costs. These types of startups typically use new technologies and innovative strategies to offer products and services that can expand nationally and internationally.
Key Characteristics of Scalable Startups
- Flexible and Scalable Business Model
- Focus on Technology and Innovation
- Ability to Attract Investment and Rapid Growth
- Ability to Enter Global Markets
- Low Operational Costs with High Profitability
- Dynamic Team and Innovation Culture Scalable startups rely heavily on agile teams and an innovative organizational culture. They usually have flexible organizational structures, quick decision-making processes, and an entrepreneurial spirit. This feature allows them to rapidly adapt to market changes and identify new opportunities.
- Viral Growth Model and Network Effect
- Flexibility in Revenue Model
Scalable Commercialization Models
Commercializing an innovation requires the use of scalable business models that can grow and develop as the number of customers increases, without a proportional increase in costs. Scalable commercialization models allow companies and startups to achieve maximum returns with minimal additional investment and expand both nationally and internationally.
There are various models for successfully commercializing innovative projects, and some of them are discussed below:
- Goldsmith Model
The Goldsmith model is one of the well-known models in the field of commercialization and consists of two main phases:
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- Development Phase: In this phase, the focus is on evaluating and analyzing the idea. Key actions in this phase include:
- Market Assessment: Examining the market’s needs and demand for the desired product or service.
- Pricing Structure Determination: Setting an appropriate price based on the value provided and competitors.
- Identifying Key Barriers: Identifying challenges and obstacles that may arise during the commercialization process.
- Feasibility Assessment: Evaluating the technical ability and resources required to implement the idea.
- Determining Required Technologies and Capabilities: Identifying the technologies and skills needed to develop the product.
- Feasibility Phase: In this phase, the focus is on technical and operational details. Key actions in this phase include:
- Business Model Construction: Defining how value will be created and revenue will be generated from the product or service.
- Evaluation of Technical Features and Production Equipment: Reviewing the technical and equipment requirements for product manufacturing.
- Environmental and Safety Features Review: Ensuring the product meets environmental and safety standards.
- Final Product Design: Developing a prototype and preparing for mass production.
- Development Phase: In this phase, the focus is on evaluating and analyzing the idea. Key actions in this phase include:
- Open Innovation Model
Open innovation is an approach in which organizations use external ideas and resources to accelerate innovation and commercialization. This model includes the following stages:
- Identifying Suitable Partners: Selecting collaborators and partners who can play a significant role in product development and commercialization.
- Co-development: Collaborating with partners at different stages of product development.
- Sharing Knowledge and Resources: Sharing information, expertise, and resources to improve the quality and speed of development.
- Joint Distribution of Benefits: Defining appropriate mechanisms to divide the benefits of commercialization among partners.
- Penetration, Growth, and Commercialization Model
This model focuses on three main stages:
- Penetration: Introducing the product to the market and creating awareness among customers.
- Growth: Increasing market share through marketing strategies and continuous product improvement.
- Commercialization: Optimizing production and distribution processes to increase profitability and scalability.
- Subscription Model
In this model, customers pay a monthly or annual subscription fee to access a product or service. This model helps companies create a steady and predictable revenue stream while building long-term relationships with their customers. Key features:
- Continuous and stable income for the business.
- Increased Customer Lifetime Value (CLV).
- Reduced Customer Acquisition Cost (CAC).
- Platform Model
In this model, a company acts as an intermediary between suppliers and consumers, earning revenue through the interaction of these two groups. This model is highly scalable due to the network effect, as the value of the platform increases as the number of users grows. Key features:
- No need to produce physical products.
- Increased value with the growth in the number of users.
- The ability to generate revenue through commissions, advertisements, or subscriptions.
- Freemium Model
The freemium model is a combination of free and paid services. In this model, users receive a free version of the product, but they must pay for access to advanced features. This model helps companies attract more users and generate revenue by converting free users into paying customers (Conversion Rate). Key features:
- Increase in the number of initial users with low acquisition costs.
- Ability to generate revenue from loyal users.
- Opportunities to upgrade customers to the paid version.
- Software as a Service (SaaS) Model
In this model, a software company provides its services through the cloud, and customers pay based on usage. This model has a high scalability due to the absence of the need for physical software installation and continuous updates. Key features:
- No need to purchase expensive licenses.
- Accessibility from any location and device.
- The potential for global expansion without high infrastructure costs.
- Marketplace Model
Marketplaces are platforms that connect suppliers and buyers. Revenue in this model is usually generated by taking a commission from each transaction. Key features:
- No need to hold inventory or produce products.
- The ability to create an international marketplace with minimal costs.
- Increased platform value with the growth of the number of sellers and customers.
- Advertising Model
In this model, a digital platform generates revenue by displaying advertisements. Users can use the services for free, but the business expenses are covered through advertising. Key features:
- No direct payment from users.
- Scalable revenue with the increase in the number of users and advertisers.
- The possibility of personalizing ads based on user data.
- Licensing Model
In this model, companies sell the right to use their technology, brand, or content to others. This model is very useful for companies that have valuable intellectual property. Key features:
- Sustainable revenue through usage licenses.
- No need to invest in production and distribution.
- The potential for market expansion through partnerships with other companies.
Conclusion
Scalable commercialization is one of the most significant challenges and, at the same time, key opportunities for innovative projects. As discussed in this article, innovation alone is not enough, and to succeed in the market, efficient and scalable commercialization models are needed. Countries like Singapore, Germany, and the United States have accelerated the commercialization process and made a significant impact on their economies by creating supportive ecosystems and implementing advanced solutions. Therefore, organizations and companies must better understand the commercialization process, identify existing barriers, and develop strategies to bridge the gap between research and development and market launch.
Various models for scalable commercialization have been introduced, each of them can be implemented depending on the type of business and the nature of the product or service. Models like subscription, freemium, platform, and SaaS are among the successful patterns that help companies grow with minimal cost and maximum speed, expanding their market share. These models, by utilizing new technologies, optimizing processes, and increasing operational scale, enable startups and innovative businesses to be more competitive. Choosing the right model and combining it with marketing and customer acquisition strategies directly impacts the success of an innovative project.
In addition to business models, other key factors also affect the success of commercialization. Investment in technological infrastructure, the use of data and market analytics, the creation of supportive networks such as incubation centers and accelerators, and the development of international collaborations all play a crucial role in increasing the chances of success for innovation in the market. Successful companies often rely on a combination of multiple commercialization models and innovative approaches, rather than depending on a single model, to optimize their growth path. This approach helps them remain more flexible in the face of market changes and quickly adapt to new customer needs.
Finally, to increase the effectiveness of the commercialization process, a shift in mindset at the macro level is needed. Policymakers, universities, investment companies, and entrepreneurs must act synergistically to create a suitable environment for supporting innovative projects. Success in scalable commercialization not only leads to profitability for companies and investors but also brings economic growth, job creation, and sustainable development. Therefore, focusing on this area can guide the economic future of countries toward innovation and progress.
