Government has always bended its brows on companies that have innovated in their technology and business practices but not provided for safe and eco-friendly disposal of parts and batteries (“Life Cycle Management: A business guide to sustainability”).
Being responsible to the environment affects the product offering in the way that consumers make an image of unethical manufacturer in their minds. Nokia has been able to create a good image by providing for eco-friendly disposal of its handset parts across the world.
Taxes are means of revenues for Government. A flourishing industry provides better prospects of high taxes to the government. Mobile phone industry has climbed up the ladder of evolution and growth in a very short span and has also been taxed heavily for latest technological innovations. These innovations sometimes help to curb emerging competition due to its monetary intensity and also help avoid malpractices which might take place under innovation disguise.
Consumer protection laws and regulations also have a huge bearing on innovation taking place in mobile industry. Innovations are expensive and if the involved technology does not satisfy customer requirements, it has to be replaced abiding by consumer laws, which could be a means of huge losses for the innovator (Bonthron 2009).
Technology reducing international distances every day, mobile manufacturers have to resort to efficiency in operational costs by rationalizing their supply chain through international trading. However, across borders, import and export charges and duties have much affected the growth of mobile phone innovation.
There have been many cases where host government has denied entry of foreign players due to the fear of their market being captured by other telephony giant, thereby siphoning a major portion of their GDP.
Competition has been very stiff in the mobile phone