According to Schumpeter,the large profits often realized from innovation tend to be transitory because

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Schumpeter argued that once a firm introduces an innovation in the market and earns large profits, other rival firms are likely to enter the market and copy the innovation, leading to a reduction in profits for the innovator. In other words, the entry of new firms drives down profits, making the large profits earned by the innovator transitory.

According to Schumpeter,the Large Profits Often Realized from Innovation Tend