That's when cloners come in and beat the living daylights out of them by copying and improving upon their innovation.
There's a fantastic book on this, 'Copycats':
http://www.amazon.com/Copycats-Smart-Companies-Imitation-Str...
Incredibly well-written for a HBS book, lots of solid case studies, and some interesting research into the nitty gritty numbers behind innovation vs imitation.
LMFAO. Suggested reading: Copycats: How Smart Companies Use Imitation to Gain a Strategic Edge http://www.amazon.com/gp/product/1422126730?ie=UTF8&link...