Final answer:
True, innovation in business pertains to introducing new or improved goods or services and includes modifying existing offerings. It fuels competition and can lead to above-normal profits. Companies like Samsung exemplify this approach by using innovation to set industry standards and remain competitive.
Step-by-step explanation:
True, in business, innovation is indeed defined as finding ways to deliver new or better goods or services. Innovation involves the process of incrementally or radically modifying an existing product, system, or process to improve it. Market competition fuels this drive for innovation, as firms seek to earn higher profits by discovering new technologies or methodologies that enable them to produce products more cost-effectively or to develop products with desired features that consumers seek.
For instance, companies like Samsung are keenly aware of the benefits of innovation. CEO Gregory Lee highlights this by noting the relentless pursuit of new innovation as a core principle of the business, bringing the consumer a world full of technological possibilities, and gaining a competitive advantage. The temporary lead that innovative firms have allows them to earn above-normal profits until other competitors can catch up to the new industry standards they set.
The scope of innovation is broad, including not only the invention of new products but also new ways of producing goods and services, and novel methods of managing a company more efficiently. It drives the transition from outdated practices to modern conveniences, such as from horses to automobiles, or candles to electric lights, profoundly impacting how people work and live.