What do John Deere, Cisco, and Obopay have in common? All three companies form a new breed of enlightened Western firms that have embraced “polycentric innovation.” Polycentric innovation is an emerging business practice that consists of networking international talent, capital, and ideas to meet global demand for new products and services.

These visionary firms are engaging India not just as a low-cost talent supply base or a lucrative mass market for their offerings but as a test-bed for trialing 21st century operating models — like polycentric innovation — that are fit for the globally-networked knowledge economy.