Disruptive innovation refers to the belief that many emerging and developing markets (Brazil, India, China, and others) are driving innovation of simple, no-nonsense products and services that replicate more complex offerings available in the developed markets.

Disruptive innovation refers to a process where a smaller company with fewer resources is able to successfully challenge established incumbent businesses by targeting overlooked segments, offering a simpler, more convenient, or more affordable product or service that appeals initially to the most sensitive customers, eventually overtaking the mainstream market. It does not specifically refer to the innovation dynamics between emerging/developing and developed markets.