Ultimately, only companies themselves can achieve and sustain competitive advantage. To do so, they must act on the fundamentals described above. In particular, they must recognize the central role of innovation— and the uncomfortable truth that innovation grows out of pressure and challenge. It takes leadership to create a dynamic, challenging environment. And it takes leadership to recognize the all-too-easy escape routes that appear to offer a path to competitive advantage, but are actually short-cuts to failure. For example, it is tempting to rely on cooperative research and development projects to lower the cost and risk of research. But they can divert company attention and resources from
proprietary research efforts and will all but eliminate
the prospects for real innovation.
Ultimately, only companies themselves can achieve and sustain competitive advantage. To do so, they must act on the fundamentals described above. In particular, they must recognize the central role of innovation— and the uncomfortable truth that innovation grows out of pressure and challenge. It takes leadership to create a dynamic, challenging environment. And it takes leadership to recognize the all-too-easy escape routes that appear to offer a path to competitive advantage, but are actually short-cuts to failure. For example, it is tempting to rely on cooperative research and development projects to lower the cost and risk of research. But they can divert company attention and resources fromproprietary research efforts and will all but eliminatethe prospects for real innovation.
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