Product innovation takes place in three different firms. The first one is about bringing a new product, like magnetic resource imaging (MRI) or microwave oven. It’s often followed by a journey of incremental progression of the product, by adding new features and improving existing ones. The next one is about taking a radical step; that is about changing the technology core. These there forms of product innovations are called greenfield, an incremental and creative wave of destruction. The uprising of a creative wave of destruction causes a disruptive effect on existing products, and sometimes, also to incumbent firms.
Incremental innovation serves two purposes. On the one hand, it keeps improving perceived value and also reducing costs. It also plays a vital role in dealing with competition response emerging in the form of replication, imitation, Innovation, and substitution. This latter effect of incremental product innovation is known as sustaining innovation.
