Innovation

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Rise of the Robots: Technology and the Threat of a Jobless Future

Benefits of innovation

  • Profit/Margins increase;
  • Product diversification;
  • Product differentiation;
  • Satisfying consumer needs;
  • Costumer fidelization;
  • Keeping or increasing market quota;
  • Securing a market strategic position;
  • Use of new business opportunities;
  • Markets development;
  • Personalized services;
  • Increase of competitive advantage;
  • Use of economies of scale.
  • Reduce of manpower

Disadvantage of innovation 

  • Job are made redundancy
  • Take time and energy to retrain
  • To innovate it might imply high investments that are not paid back during the product life cycle;
  • Excessive concentration of resources and attention on the new product at the expense of quality and marketing of the existing products;
  • wages depress
  • research is very expensive which is only affordable for large firms
  • takes a considerable amount of time which means investors have to wait a long time for any return
  • other companies may adopt similar products without having to undertake the expensive research
  • to succeed in a competitive market, firms must produce continuously innovative ideas which require continuous investment
  • increase income inequality and poverty
  • reduce product quality
  • increase of inflation