Innovation is the principled exploitation of ideas related to knowledge of those entering the industry as well as those moving out of the industry for the purpose of hastening modernization within the company and expansion of the markets with the intention of advertisement to the outside (Chesbrough 2003). This paper will focus on the importance of innovation for firms to compete in many industries and then go further to illustrate the response by citing examples of the industries. Furthermore, the paper will discuss the characteristics of industries that exhibit short and long technology cycles plus the factors that influence the length of technological cycles in an industry. Innovation has enhanced the effectualness and well organized plans that are efficient in manufacturing of merchandise and availing them to the market. The development of new industries has been facilitated too. This has been a success on the side of innovation since in most cases; companies that do not continuously innovate on proper ways of developing, manufacturing and distributing procedures of their goods efficiently are mostly likely to collapse due to stiff competition from their rivals (Chesbrough 2003). Innovation is important during conventions of the future challenges of the environment. Incase of need to reduce wastes found in the environment, the amounts of carbon should be reduced. Conversely there is a need to discover innovative habits to split the connection between financial augmentation and resource exhaustion and ecological deprivation. Innovation has also at large boosted economic growth. The increase in the relevance of innovation as an approach in competition has greatly been influenced by globalization of the market. This has led to stiff competition that has resulted in swifter and creation of quality products and services to the customers thus pressure being exerted further on competition. Information technological advancement has assisted in creating rapidity for innovation. Information technologies have assisted firms to diversify their merchandise and help to strike the competitor. According to Chesbrough (2003), one of the characteristics of an industry that exhibits a short technological cycle is that its structure is mostly informal due to the absence of inflow of new ideas. The same ideas of the people who started the firm are still in use. The owners of these firms can not compete with others as the means to outdo the fellow competitors are unavailable. If there is stiff competition in the located place, then this business will automatically collapse. Single products and services are offered on an entrepreneurial basis. For collective individuals, single products are offered with variations in quantity at different times. The goods are not of good quality as a result of absence in competition. In addition to that, the goods produced are only those that are required and their demand is high too, The total outcome depends on the individual’s hard work. If quality products are manufactured, then the total outcome for the owner will be high. In addition to that, his availability to the customers will count a lot. If he avails himself to the customers all through, then the outcome will be high. Though, despite all these, these industries are