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A company copying a product does not spend as much on the innovation or marketing aspect. That is why some IP protection (e.g. patents to license) is needed and reasonable.
I can reverse engineer a great deal out of my competitors' components (I'm an R&D manager in the field of passive components) if I choose to. That saves an enormous amount of R&D, even with the inevitable fine tuning (material choices, process control) and new equipment purchases.
Also, if the product fills some new niche in the market, the first company bringing it to market blazes a path in the hearts and minds of customers. "Oh, so THAT's what I can use it for." That first company spends more on getting mindshare for such a product. The second company can come along and sponge off that effort, sometimes by being an intentional 'second source,' gradually eroding the 100% market share of the first company with very little marketing investment. Now, to be fair, some products are so unique that there is a win-win relationship between those two companies, in that customers who are leery of unique single sourced items are more willing to try it if they have an alternate supplier available.
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