The document discusses factors that contribute to innovation and new product success or failure. It states that in rapidly changing economies, highly innovative firms are able to identify new market opportunities and create a culture that supports risk-taking and experimentation. Both incremental and disruptive innovation are important, but newer companies tend to create disruptive technologies that significantly change competitive dynamics. Research finds that superior product quality and a clear product concept are the top factors for new product success, while failures often result from issues like misinterpreting market demands, overestimating market size, inadequate distribution, or strong competitive responses. Constraints on innovation include a lack of good ideas, fragmented markets, and financial or regulatory barriers.

3. In economy of rapid change innovation
is necessity. Highly innovative firms are
able to identify and quickly seize the
new market opportunities. They create
a positive attitude toward innovation
and risk taking, routinize the
innovation process, practice teamwork,
and allow their people to experiment
and even fail.

4. Most established companies focus on
increamental innovation, entering new
markets by tweaking products for new
customers, using variations on core
product to stay one step ahead of the
market, and creating interim solutions
for industry-wide problems.

5. Newer companies create disruptive
technologies that cheaper and more
likely to alter the competitive space.

6. New product specialists Cooper and
Kleinschmidt found that the number
one success factor is unique, superior
product. And second key factor is a well
defined concept.

7. New product fail for many reasons:
ignored or misinterpreted market
research; overestimates of market size;
advertising, or price; insufficient
distribution support; competitors who
fight back hard ; and inadequate ROI or
payback.

8. Shortage of important Ideas in certain
areas.
Fragmented markets.
Social economic, and governmental
constraints.
Cost of development.
Capital shortages.

9. Shorter required development time.
Poor launch timing.
Shorter product life cycle.
Organizational support.