Innovation And The Growth Of Business Essay
Entrepreneurship has seen major growth over the last twenty years. In 2015, there were more than 675,000 new ventures started (Entrepreneurship and the U.S. Economy). A major debate in entrepreneurship is whether to innovate or imitate the competition. Innovation involves the convergence of new knowledge into a new product, process or service and the implantation of the new product, process, or service (Innovation and Entrepreneurship). Imitation is the opposite which is the conscious or unconscious behavior of copying others (Shenkar). Both options are important in the growth of business. The paper will explore the advantages and disadvantages of both innovation and imitation.
Entrepreneurs are innovators of the economy and the driver of business. Innovation creates new markets, new jobs, new products, and new processes. Innovation provides companies with competitive advantages which includes, the first mover advantage, intellectual property protection, and market expansion. These all create barriers to entry. Barriers to entry are extremely important because it provides businesses security from new entrants or imitators stealing market share.
The first mover advantage exists when an organization is better off than its competitors as a result of being first to market with a new product, process, or service. There are many advantages that the first mover provides. First, the first mover advantage has the potential to create a lasting impression on…