As a company moves along a product (or process) path, knowledge is accumulated. Since most innovation is a rearrangement of existing knowledge units, the company is able to further innovate, and therefore move quicker, along this chosen path.

Companies that have developed a knowledge base in their industry make it difficult for a new entrant to compete.

Consider Toyota, for example, in this description...

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The idea of a 'core competency' in a company is outlined in 'Competing for the Future' by Gary Hamal and C.K. Prahalad:

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