Final answer:
In the decline stage of the industry life cycle, product innovation efforts decline slightly as companies focus more on cost reduction and efficiency over growth.
Step-by-step explanation:
During the decline stage of the industry life cycle, product innovation efforts decline slightly.
When a market is in the decline stage, companies may see reduced returns on innovation investment as consumer interest wanes and the market contracts. Firms often minimize costs to remain profitable, shifting focus from innovation to efficiency and cost-control. Innovations may still occur, but typically at a reduced rate, as the market is no longer expanding, and businesses prioritize maintaining existing market share over growth through innovation.