New product development helps companies stay competitive within the market due to changing demand from consumers, advancing technology and new market opportunities. The most innovative businesses will anticipate what the market demands and provide the product before it is requested.
New product development may refer to completely new products that are developed by new companies. It may also include the advanced development of products that have already been introduced to the market. Many companies often make the choice not to develop new products in house, but they instead rely on making purchases to acquire the resources they need, such as patents or even other companies that are already producing the product.