GENERAL KNOWLEDGE

Detailed explanation-1: -Basic economic theory demonstrates that when firms have to compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation.

Detailed explanation-2: -The model describes how competition may increase the incremental profit from innovating. With stronger the competition, the risk of being matched by and overtaken competitors will be costlier for technically developed firms. Consequently, these firms will increase their R&D expenditure to outpace the competition.

Detailed explanation-3: -Innovation is the indicator of a successful economy and it leads economic development and creates new business areas. Moreover, innovation is a tool which enables a successful competition with high-quality low-wage economies for a high-quality high-wage economy without decrease in living standards (Figure 2).

Detailed explanation-4: -The culture of Competitive Innovation. That culture is known as “Competitive Innovation”-and it is a culture that requires everyone in the organization to have the mindset of constantly wanting to be the best they can be, with the understanding that making a mistake is an opportunity to learn and grow.