Innovation

question 89

Multiple Choice

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.

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Definitions:

Competitors

Entities or firms in the same industry or market that offer similar goods or services to consumers.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares of each firm within the sector.

Industry

Refers to the production of goods or services within an economy, categorized into sectors such as manufacturing, services, and agriculture.

Firms

Business organizations engaged in offering goods or services to consumers, often characterized by the ownership structure and size.