We refer to this ability to achieve new forms of competitive advantage as 'dynamic capabilities' to emphasize two key aspects that were not the main focus of attention in previous strategy
perspectives. The term 'dynamic' refers to the capacity to renew competences so as to achieve
congruence with the changing business environment; certain innovative responses are required
when time-to-market and timing are critical, the rate of technological change is rapid, and the
nature of future competition and markets difficult to determine.