Invention Alone is Not Enough

A strategy based solely on invention and technological leadership is not sustainable. The conventional wisdom that you can stay ahead by inventing so fast that competitors can never catch up is a flawed and dangerous idea.

The Flaw in the "Technology Treadmill" Strategy:

• Competitors Get Smarter: Competitors, both domestic and international, learn quickly. The time needed to copy a new invention gets shorter and shorter.
• Copies Get Better: The copies often get better, incorporating improvements and benefiting from more efficient, modern manufacturing techniques.
• Followers Start to Invent: The profits earned from selling good copies are used to finance the next round of invention, turning the follower into a leader.
• Cedes Mature Markets: The strategy of abandoning older products to the "copiers" while you invent the new means you are constantly surrendering large, profitable markets.

American technology companies have always led in innovation, creativity, and risk-taking. But these qualities alone are not enough to win. This is a key reason why Success Requires Both Invention and Execution.