The correct approach to globalization is to tap selectively into sources of advantage in other nations’ diamonds. For example, identifying sophisticated buyers in other countries helps companies understand different needs and creates pressures that will stimulate a faster rate of innovation. No matter how favorable the home diamond, moreover, important research is going on in other nations. To take advantage of foreign research, companies must station high-quality people in overseas bases and mount a credible level of scientific effort. To get anything back from foreign research ventures, companies must also allow access to their own ideas—recognizing that competitive advantage comes from continuous improvement, not from protecting today’s secrets.