How does innovation differ from invention and diffusion? How does innovation affect competition among firms?
What will be an ideal response?
Innovation is the first successful commercial use of a new product or method, or the creation of a new form of business. There are two major types: product innovation, which involves new and improved products or services; and process innovation, which involves new and improved production or distribution methods. Diffusion is the spread of an innovation through imitation or copying. New and existing firms copy or imitate successful innovations of other firms to profit from new opportunities or protect their profits. Innovation is an important factor in competition because it can enable a firm to “leapfrog” competitors by making their products or methods obsolete.
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If official U.S. poverty statistics included in-kind transfer payments the:
a. poverty rate would be close to zero. b. poverty rate would be lower. c. government deficit would be lower. d. top 10 percent of those in the income distribution would be wealthier.
Higher productivity can be achieved through
A. innovation. B. a better-educated workforce. C. new techniques of production. D. all of the above