“Most likely it’s because the complexity of their business continues to increase and it’s a daunting task to integrate and manage their emerging market operations,” said Gary Coleman, global managing director for manufacturing, and partner Deloitte & Touche USA LLP.

Presenting the new research findings of the “Innovation in Emerging Markets 2007 Annual Study” at a CEO lunch in Davos, Coleman added: “Companies are locating higher-value activities such as complex production, sophisticated research and development (R&D), and sales and marketing operations in emerging markets.”

He added: “What was originally seen as low-cost locations for routine operations, companies are moving up the value chain in emerging markets.”

The Deloitte 2007 study examines what companies are doing in the areas of talent, risk and structuring their operations to be successful in emerging markets.