The major impact of product innovation tends to be on the firms' revenues, while that of process innovation tends to be on costs.

Question

Quizplus · Accepted Answer

Product innovation often leads to new or significantly improved goods or services, which can open up new markets or increase market share, directly boosting revenues. Process innovation, on the other hand, usually aims at improving the efficiency of production or delivery methods, which typically reduces costs and can increase profit margins without necessarily increasing sales.

The Major Impact of Product Innovation Tends to Be on the Firms