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Post by account_disabled on Oct 22, 2023 6:32:04 GMT
Another reason to innovate is to respond to the constant change in the work environment, customers and competition to adapt to market demand. Obtain long-term competitive advantages . Innovation is one of the few sources that can provide long-term competitive advantage. The sum of differentiation, increased productivity and the ability to adapt to changes means that the company is ahead of the rest. Can continue to innovate and set the course for the market, while the others can only act reactively. Factors that favor innovation • Adequate legislation . Innovation has an associated cost, sometimes moible number data quite high, so that adequate legislation is needed to protect the rights of innovative companies against possible imitations, allowing them to obtain benefits that offset said cost. Otherwise, there will be no incentives for innovation. On the other hand, said protection should not be excessive or create a quasi-monopoly situation, since the opposite incentive would be eliminated, the one that competing companies have to try to manufacture similar products with the same or better features. The protection of innovation is articulated in the Patent laws, while specific Courts are in charge of defending competition. Resource availability . Innovation needs to have the necessary resources.
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