Singapore — Innovation is often seen as the ultimate driver of business success, celebrated for its role in creating new markets and reshaping entire industries. Yet, imitation—frequently dismissed as less glamorous—can, in certain contexts, provide equal or greater rewards. For organizations navigating dynamic markets, understanding when to innovate and when to imitate has become a critical strategic decision.
Decades of research suggest that many innovation failures stem not merely from poor execution but from misaligned strategic choices. Companies often overlook a fundamental question: Should they innovate at all—or might imitation yield better outcomes given their position and industry context?
To address this, researchers have proposed a framework built on two key dimensions: the maturity of an industry and a company’s relative positioning within that industry. Positioning refers to how well a company performs against competitors on the attributes that customers value most. These criteria vary—airlines compete on cost and service, smartphones on design and processing power, and software firms on reliability and usability. Assessing where one stands in relation to rivals is essential before choosing the right path.
Industry maturity further shapes the answer. In nascent industries, opportunities for breakthrough designs or business models abound. Here, innovation is often rewarded, as seen in the early automotive industry. Ford’s Model T dominated with affordability and reliability, but GM later captured success by innovating with stylish, segmented products that addressed different customer needs. The industry was simply too young to converge around one standard, and differentiation proved highly valuable.
In contrast, mature industries present different dynamics. With numerous players and well-established standards, imitation can sometimes be the safer and more profitable route. Competitors in mature sectors often refine existing solutions rather than reinventing them, ensuring that companies remain competitive without expending excessive resources on risky ventures.
The choice, then, is not a binary between “innovate” or “imitate” but a strategic calibration based on timing and market realities. Firms that carefully align their strategies with industry maturity and their relative position often find themselves better equipped to achieve sustainable performance.
For business leaders, the lesson is clear: innovation should not be pursued as an end in itself, nor should imitation be dismissed as inferior. Instead, the strategic question is about fit—knowing when to chart new territory and when to follow proven paths to strengthen organizational resilience and growth.
