This report examines innovation in emerging economies, and looks at the opportunities for the UK, and for its regions and nations.

Key findings

• The nature of international relations is changing. A new form of globalisation – globalisation from below – is the consequence of migration, ICT and new countries in the global knowledge economy 
• The UK is well placed to benefit from this, particularly in the area of innovation
• Globalisation remains concentrated in London and the South East, but this might be changing
• The UK government will need to develop a better understanding of how changes are impacting on UK relations with the rest of the world
• The government, devolved administrations and Regional Development Agencies will also need to recognise the opportunities arising from emerging innovation hotspots

The UK is a successful magnet for foreign direct investments, especially in R&D, and is regarded as one of the world's favourite destinations by big international players.

But the nature of international relations is changing. Migration, ICT, and the entrance of new countries to the global knowledge economy are creating a new form of globalisation.

In this report, we learn a lot about the extent of innovation in China, India, Estonia, Brazil and South Africa. We see their strengths and weaknesses. But we also show where there are real opportunities for the UK, and for its regions and nations.