In this highly competitive and fast pacedeconomy, businesses fight to be dominating world markets. The businessenvironment in today’s world is experiencing significant changes such asincrease in competition, advancement of technology and increasingglobalization. This in turn reflects market opportunities for development tobusiness firms. Market development refers to a type of business strategy bywhich a business tries to expand to new groups of buyers for its existingproducts, meaning to expand to untapped markets. Moreover, what can be heldfrom this is that in order to survive in this ever-changing economy, and essentially a keyfactor, is the concept of innovation. The notion of innovation can beinterpreted and executed in many different ways.
With the main four types ofinnovation being incremental, disruptive, architectural and radical, firms can implementone of these types as a business strategy in order to enhance theircompetitiveness in the market. Taking Japan as a compatible example shows howinnovation can develop an economy into one that is now highly developed andmarket orientated, accommodating some of the worlds leading industries such as motorvehicles and electronic equipment to just name two. Japans economic outlook hasbeen very interesting and has experienced spectacular growth in three differentperiods, in particular post the deafeat of World War 2 in 1945 when the islandnation rose to become the one of the worlds largest economy. Currently Japan isamongst the leading innovation countries, being the world’s third largesteconomies