- 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