'Liability of origin' and resource constraints make it extremely challenging for firms from emerging economies to participate in advanced markets. This paper describes how firms from the Indian software and pharmaceutical industries overcame such challenges by leveraging renowned public institutions and competed successfully in advanced markets. Their success transformed India into a location of business advantage compelling global competitors in these industries to modifY their business models. This research contributes to theory building about internationalization of firms from emerging economies - a relatively unexplored domain in international business research. Keywords: Emerging economies, Internationalization, Liability of origin, Leveraging Institutions, Pharmaceutical industry, Software Services industry