We often valorize companies that attempt to innovate in their industries, because they push the boundaries of what is possible and, in doing so, achieve extraordinary returns for their endeavors. Not surprisingly, the vast majority of top performing companies rank innovation among their top three priorities. But not all firms benefit from their investment in innovation.
Frequently, scholars and practitioners attribute innovation failures to the ways companies go about developing and commercializing innovations. But our research suggests an alternative reason—many innovation attempts fail because companies do not fully understand their positioning in the market.
In this article, we take a step back. Before deciding how to innovate, we suggest companies ask when they should innovate—and whether it might make more sense to imitate instead. While less glamorous, for some companies, imitating the right rivals at the right time can be more effective and lucrative than attempting to chart an entirely new course.
Please select this link to read the complete article from Harvard Business Review.