Commercial Potential - Barriers to Entry

Most existing markets exhibit (or are organized by the existing players to present) barriers to entrance by newcomers or new products. A variety of barriers to entry can exist. Some typical ones are as follows: an immediate and high capital investment is required before production can commence, industry or government standards must be changed before the product can be sold, a few players with no reason to adopt new ideas dominate the market, the current products are considered commodities in that low price is of paramount importance, rigorous product testing over a long period of time (e.g., FDA approval) is required, etcetera. All of these factors represent either speed bumps or mountains that the invention developer must traverse. Their significance determines, in part, the commercial potential of the invention.

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