Advantages of innovation

13 Advantages of innovation

  • It reduces raw material wastage e.g. innovation of new machines that are more efficient.
  • ItAssist in packaging and repositioning of products for global distribution e.g. marketing innovation.

  • It helps in distribution of goods and services.
  • It increases the market for the enterprises` products and services e.g. use of internet marketing.
  • It provides a new way Seeking financing, e.g. joint venture partnership in business.
  • Product innovation increases sales and profits of an enterprise, as more customers are attracted
  • It gives an entrepreneur anopportunity to integrate the business for global economy through alliance.
  • Helps to attract new customers to the business. e.g. innovations in promotion and advertising new products
  • It helps a business to achieve efficiency in production, e.g. innovation in techniques of production; this increases output and sales of the enterprise.

  • It helps to improve production of goods and services in an enterprise. e.g. process innovation
  • Operating expenses are minimized
  • It’s used as a competitive advantage, provide a basis for firm`s growth

Innovative firms develop strong, positive market reputations


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