Consumer expectations drive the amount of innovation in the market. Customers are used to products that continually improve and make their life easier. Modern consumers are more informed and have more options in terms of what they buy and who they buy it from. Essentially, customers won’t accept mediocrity because they know they can always go somewhere else.
Innovation is important then because it is one of the primary ways to differentiate your product from the competition. If you can’t compete on price, you’ll need innovative products and ideas to make your business stand out from the crowd.
Innovation in your business can also be driven by the amount of innovation your competitors are doing. Being first to market with a new product can provide you with a significant advantage in terms of building a customer base. It is difficult to compete if your products are seen as obsolete or out of date. However, when investing in innovation, keep in mind that many businesses survive by copying and adapting the innovations of others, and can benefit from your hard work.
In a broader sense, innovation is important to the advancement of society around the world. New and innovative products can increase the standard of living and provide people with opportunities to improve their lives. Breakthroughs in medicine and technology have significantly improved living standards around the world.
Innovation has also lead to significant improvements in the way businesses operate and has closed the gaps between different markets.