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Ericsson, the Swedish telecommunications group, increased its spending on new product development in the early 1990s. Its chief executive, Lars Ramqvist, admires the power of innovation: invest to the utmost in new products or services, forget about short-term profits and be willing to take risks. As it turned out, in the tough, fast-moving global telecommunications market, Ericsson now enjoys a 40 per cent share of the world market for mobile phone systems and one of over 50 per cent in digital cellular equipment. Why do you think a willingness to take risks is so important when making heavy investments in developing new products and services? Is technology alone sufficient for success? What other factors do you think facilitate the successful commercialization of new products and technologies?

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