However, there is not a clear-cut reinforcement mechanism, if only because the industry is highly competitive and many firms are viewed as innovators. The perception of being innovative in the smartphone industry is more of a hygiene factor than anything else -- you need to be an innovator to even be in the market right now. Thus, while Palm may focus on improving its perception as an innovator, this does not create a reinforcing loop. What Palm needs right now is to take advantage of the opportunities that these loops and the interference of HP in these loops provide. The company is now aware of the relationships that form the foundation of these two loops. It understands that perception must match reality with respect to the company's innovation in order to attract not only better staff but also more customers....

Palm also understands the relationship between marketing investment and market share. HP will not provide superior funding for these endeavors forever. Thus -- and particularly with marketing -- Palm needs to leverage the reinforcing mechanisms of these loops and the momentum shift that HP has provided to build better market share through greater investments, and to continue to improve the company's public perception with regards to innovation.
Works Cited:

Bellinger, G. (2004). Balancing loop. Systems Thinking. Org. Retrieved March 11, 2011 from http://www.systems-thinking.org/theWay/sba/ba.htm

Scacco, R. (no date). Palm handheld computers: A case study in innovation. Brandchannel.com. Retrieved March 11, 2011 from http://www.brandchannel.com/images/papers/palm_pilot.pdf