Product development is probably the most important part of an innovative technology start-up. In such companies, the prime focus is often on the development of a working product. The decision to focus on a particular business activity depends on your strategic business objectives. Product development is for instance vital if you decide to launch your product in cooperation with a major existing company. However, if you decide to enter the market on your own, you must know how to reach your potential customers, how to price your product, how to set up an effective and efficient distribution system, etc.
In order to be able to contact prospective clients, you do not necessarily have to have a completely working and mass producible and packed product. For each deliverable, another phase of product development is required.