The article compares how product innovation differs between a monopoly and competitive market. It shows that in a competitive market, new products are more likely to be innovative. However, in a monopoly, the quality of new products can be higher if the innovation is complex. Monopolies may invest more in innovation for products that are different from their initial offerings, while competition is better for similar products. Monopolies can charge higher prices for new products but may be less motivated to innovate to protect their initial profits.