Imitation Advantage

881 Words4 Pages
Given the fact that global resources are becoming rare and expensive, should nations and firms prefer imitation to innovation? Yes, firms should imitate other successful organization until they are strong enough to innovate a new product. It is cheaper and easier for a startup firm to limit the risk of failing. Here are some of the reasons from Forbes magazine: Avoid initial major R&D cost by Imitating. Learn from competitors and early adopters. Easier to find investors. Imitation drives progress. Try a new country or market. Of course, you still have to do your homework and market research. Just because something works in Silicon Valley, doesn’t mean it will work in Peoria. Also, imitations done without the normal…show more content…
That is not to say that innovation is impossible under the circumstances, but it has many risks attached to it. Identify the differences between pure versus reflective imitation. Imitation can be broken down into two categories, pure and reflective. Pure imitation strategy is rarely effective, and that can be seen in the study of Peruvian adoption of modern industrial practices. When a country is trying to imitate, it must pick practices that will fit into its country. Most countries fall in the pure imitation category rather than reflective. Pure imitation is a pure knowledge transfer that conveys no sustainable competitive advantage to the borrower. Compared to reflective imitation, a lower level of learning occurs with pure imitation since the organization cannot generate any new knowledge. The specialized level of investment in R&D and information channels is very limited. As for reflective imitation, it is more than just simple copying and knowledge transfer. It reflects the particular requirement of the new user by adapting the technology in a new setting. This helps a business surpass its…show more content…
With emerging technology and new firms forming with similar ideas, a strict solution must be proposed to prevent the theft of intellectual property (IP). As mentioned, developing countries want to have a shorter lifetime patent versus developed countries who want a longer life span of patent contract. The reason for this is probably because with a shorter life span, developing countries can form similar products and sell them for a higher profit. This article emphasizes that imitation can be an effective competitive strategy. On the contrary, the United States labels imitators are counterfeits, clones, and copycats. However, imitation can lead to innovation. Sometimes basing something off of someone’s idea might lead to a nouveau idea. Innovation is known as the creative destruction that was caused by imitations which is defined as “diffusing innovations: The reason why all of this is a conflict is because developing countries lack funding. Due to the lack of money they are more likely to do something illegal and follow the path of counterfeiting. People who cannot tell the difference between the original and the fake will choose to buy the cheaper item. The patent contracts should be universal; not only will this eliminate issues in the developing countries, but it will also stop developed countries such as the U.S. from taking advantage of
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