It is called profit. This is the difference between the cost of production and the price is charged to customers. The surplus (the difference between cost and perceived value) created by a product is divided between the producers and the consumers. For the producer, the challenge is to increase the profit without decreasing Consumer surplus. Ideas offer a solution. It is even possible to increase both consumer and product surpluses by ideas, as ideas offer the opportunity for increasing the quality and reducing the cost simultaneously.
Leveraging ideas to increase profit is at the core of building a high performing industrial economy. However, most of the developing countries are failing to generate and integrate ideas in products and processes for creating the increasing profit-making opportunity for the producers–without reducing consumer surplus.
