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Improvement in productivity also lowers production costs resulting to lower prices, which in turn encourage increase in sales, increase in share of markets, and high profits for the business. Innovation on the other hand, does not just involve the product design or concept but encompasses broad areas of initiating the products or services like the manufacturing processes; materials used and business practices in distribution and sales. Innovation is a product of creativity and it boosts the relevance of the product or business in the market since market demand patterns prompts such creativities or innovation.
To illustrate the points here, there are instances where creativities in changing product design resulting in improvement that creates value; improve performance; lower cost; and better quality of the product that does not increase customer’s patronage. Such a case may be because of the markets ignorance, averseness to the culture of innovation within the market and other factors, which frustrates the anticipated positive outcomes of innovation.
The situation however, will be much different in a highly competitive market because such markets are always expectant and receptive to new products and businesses, this attitude in the market is a result of individual competitor’s activities and all players in the sector enjoy these gains.
Also, costs in penetrating into new markets are much less with the presence of competition in the market, because the presence of different active players in the market creates a lasting impression in the minds of current or prospective customers of the business and the product they offer. Such lasting impression invariably leads to better acceptance in the market and larger patronage.
Furthermore, the advantages of increasing competition are visible in current advocations for establishment of business hubs, industrial estates and deregulation of key sectors of the economy. This is because these elements help boost the effectiveness and efficiency of the businesses in the different sectors they operate, engender industrialisation and foster economic growth and development in the country as a whole.
Facts indicate greater successes when a community of businesses seeks a collective benefit than the sum of individual benefits each company would realize by only optimizing its individual performance. Hence, economic, social and environmental benefits thrive when competing businesses cooperate to maximize the impacts they have on their environment.

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