Exploring the Impact of Innovation and Competition on Profitability in Internet-Based SMEs: A Survey Analysis

The aim of this paper is to explore the interaction between innovation and competition in internet-based SMEs and to identify key factors influencing innovation. The author investigates how competition impacts industry innovation by analyzing product market dynamics and conducting a comprehensive survey asking industry experts about the challenges that hinder innovation and competition. Additionally, the study reviews various models and case studies to understand how competition drives innovation. The findings suggest that increased competition enhances productivity across multiple industries. The author also provides policy recommendations to support innovation and competition, which are crucial for regulators aiming to boost these elements in small and medium-sized internet-based enterprises. This paper offers valuable insights into the relationship between innovation and competition and proposes actionable policies to promote both.