Chapter # 7

Create the Product: Innovation

And interesting aspect of product development is the idea that the full phases of new-product development, from idea generation to commercialization, are completed by one company and the benefits can be taken by another. The idea of generic brands and knock-offs.
As talked about in the chapter frequently there is a very high cost associated with putting a new product or service on the market. Market research, testing and technical development are costly and not all companies have the financial resources to do so.  It is not unseen to see one company initially take on this task and develop a great idea but due to factors in the market another company is able to use their research to their own advantage. This is commonly seen when looking at the drug industry. Due to trust in the FDAs approval it is very easy for consumers to transition quickly to the generic brand after the initial twenty years where the brand name has exclusive rights. A great example of this is with the drug ibuprofen. The brand name of this is Advil or Motrin. So many consumers buy ibuprofen today that it has now almost turned into  a brand name of its own.