Firms innovate because they are looking for:
A)Market share
B)Leadership of the industry
C)A competitive advantage
D)Lower costs

Question

Quizplus · Accepted Answer

Firms innovate to gain a competitive advantage over their competitors. This can be through new products, services or processes that allow them to differentiate themselves and stand out in the market. Both market share and leadership of the industry are goals that can be achieved through innovation, but they are byproducts of gaining a competitive advantage. Lowering costs may also be a reason for innovation, but it is not the primary motivation for most firms.

Firms Innovate Because They Are Looking For