In this culture-based innovation keynote Mat Shore discusses the cultural and geographical contexts that come into play when innovating a product. He uses the example of coffee and its bizarre role in American society. He notes that Americans don't really drink coffee, but instead tote it around with them while they run errands or commute to the office.
He then outlines the differences between an American coffee and a Dutch coffee. A cup of American coffee is much larger, 99 percent milk and one percent coffee; it is a different shape, size and thing.
This observation is important because it is necessary for innovators to take cultural and geographic context into account when creating products. Those companies that fail do so will lose to local competition who has marketing tactics to which local individuals will be much more responsive.