First-Mover or Fast-Follower: Which is the right innovation strategy for you?

The decision of being a first mover or a fast follower in innovation strategy has pros and cons. The first mover advantage is not always real, as demonstrated by a study of 500 companies which found that 47% of pioneer entrants in new categories failed to build a successful business. Fast followers may benefit from being in markets with short product life cycles. The ideal strategy depends on the risk profile and innovation strategy of a company. It is important to assess readiness for launch, the innovation and the market, and allocate the appropriate timeframe and risk investment to make an innovation a success.