Sage, the rod length on a KTM is 110mm, 5-6mm longer than Jap OEM rods. They're changing the rod to stroke ratio, which enables the piston to dwell at TDC longer so as to produce a higher pressure rise before the piston starts on the downstroke, which should raise the overall BMEP.
Not exactly a new development, back in the mid-1980s we were buying up old Honda NSR 250 cranks and stripping them down for the 110 mm rods so we could fit them to CR125s. Over the past 20 years rod ratios have gone from 2.01:1 to 1.77:1, and now they're moving back closer to 2 again.
Theres a lot of other factors to consider when installing a long rod kit, spacer plates for the base and modifications in port timing are needed.
One common myth is that a long rod changes the displacement of the cylinder, but it actually it increases the crankcase volume. Some tuners like the guys at Honda stuff the crankcases with epoxy to compensate for the volume added by the longer rod.
Its not for everybody and it takes a lot of planning to implement a long rod kit effectively.