An ongoing development helps maintain an evolving system’s suitability for a particular task/role in comparison to the other systems it is gradually developing with. Evolutionary biologist L. van Valen proposed this effect based on a reference to Alice by the Red Queen in Lewis Carroll’s “Through the Looking Glass”. Therefore it is called the “Red Queen Effect”.

For example, Gillette spends a huge sum of money on R&D. Based on this investment in R&D, Gillette had set a goal of getting 40% of its sales from products launched within the past five years. Its products like Mach3, Sensor and Turbo were very successful and it was able to meet its stated goal.