The year after a company whose success depends on product innovation has a profitable year, it invests more cash in its research and development department to attempt to generate innovations that can ensure future success. Therefore, companies whose success depends on product innovation should generate more innovations during the years following profitable years of business than during years following unprofitable years of business. Which of the following, if true about a company whose success depends on product innovation during the year after a profitable year, casts the most serious doubt on the conclusion drawn above?
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Explanation: The conclusion is that companies **should generate more innovations** after a profitable year due to **increased R&D investment**. We need a statement that suggests more R&D investment does *not* necessarily lead to *more* successful innovations. Option 5: **Its innovations increase in quantity, but have a higher rate of failure when applied to the market.** This directly attacks the desired *outcome* of the conclusion. A higher *quantity* of innovations is fine, but if they have a *higher rate of failure*, the company's overall successful innovation output might not actually be more" or "better" for future success