The aim of the present article is to examine parameters of product innovations that could lead to a successful expansion of international companies to the innovation-driven market. The case of the European mobile technology company in the Korean market is analyzed by introducing a market research method and demonstrating what sort of mobile phone could be designed for the South Korean youth. Companies often declare focusing on stronger marketing and sales efforts in one particular business area or geographical region via creating, testing and introducing a new product. The reasons for failures in foreign markets in many cases are related to the lack of knowledge of this region, wrong choice of the product as well as the incapability to choose a right innovation and expansion strategy. It should not be forgotten that a technological product innovation is more readily adopted by the firms that have a market penetration strategy and hope to gain a direct advantage over the competition. The level of technological intensity, user-friendliness, style, cultural aspects, loyalty to native products as well as the level of integration of customers and clients in innovation or marketing processes are important factors while expanding to foreign markets.

The research question: are product innovations necessary for international companies in expansion to innovation-driven markets? Firstly, there is the country profile presented in the context of transformation to the knowledge-based economy; it is continued by classifications of innovations and product design. These chapters are followed by the presentation of the European mobile company ‘X’, which is a good sample of companies that could find results of the present market research of significant interest. Finally, there are main preferences regarding mobile phones, collected by the online survey, where Korean citizens from 15 to 40 years old were interrogated, revealed; the answer to the research question is provided and a new product for the European mobile technology companies designed.