Why would a company choose to follow rather than lead technological innovations?

Answer 1

A company might choose to follow rather than lead in technological innovations to reduce risk and avoid the high costs associated with research and development. By observing the leaders, they can learn from their successes and failures, allowing them to adopt proven technologies and strategies. This approach can also enable them to focus on improving existing solutions or finding niche markets, ultimately leading to a more stable and cost-effective business strategy. Additionally, following allows companies to innovate incrementally rather than disruptively, which can be less threatening to their existing operations.