This advantage can lock-in their market dominance, creating a winner-takes-all dynamic, potentially leading to increased earnings inequality across firms. Concentration allows for greater benefits from economies of scale, but there is a risk that barriers to entry can stifle innovation.
The changes that innovation and globalization bring about in the corporate structure and organization and in labour demand clearly need to be understood and responded to. The most significant impact of the current wave of globalization is, again, on the labour market.