Generally, as the level of________ innovation declines, the level of________ innovation…

➤ Why does process innovation tend to rise when product innovation falls?
Process innovation rises because firms reallocate resources toward efficiency once product breakthroughs slow. Market saturation and weaker differentiation push organizations to lower manufacturing costs, improve yields, and streamline logistics. Process changes—automation, workflow redesign, and supplier integration—help sustain margins without frequent new product launches.