Innovation
A) is the first discovery of a product or process, rather than its first successful commercial introduction.
B) includes new products but not new production methods.
C) is also known as diffusion.
D) can either increase or decrease the market share of a large firm, depending on whether it is introduced by the large firm or one of its competitors.

Question

Quizplus · Accepted Answer

Innovation can lead to changes in market share for a large firm, either positively or negatively, depending on whether the innovation is introduced by the firm or its competitors. Therefore, option D is the correct choice. Option A is incorrect because innovation refers to the successful commercial introduction rather than the discovery of a product or process. Option B is incorrect because innovation can also include new production methods. Option C is incorrect because diffusion is the process of the spread of innovation, not a synonym for innovation.