How companies succeed in international markets

…Companies achieve competitive advantage through acts of innovation. They approach innovation in the broadest sense, including both new technologies and new ways of doing things. They perceive a new basis for competing or find better means for competing in old ways. Innovation can be manifested in a new product design, a new production process, a new marketing approach, or a new way of conducting training. Much innovation is mundane and incremental, depending more on accumulation of small insights and advances than on a single, major technological breakthrough. It often involves ideas that are not even « new » – ideas that have been around, but never vigourously pursued. It always involves investments in skills and knowledge, as well as physical assets and brand reputations…

Michael E. Porter, The Competitive Advantage of Nations