Solving a problem or improving an existing product?

When it comes to creating a new product or improving an old one, how do you even come up with ideas or spot problems to tackle?

Is it better to improve something that’s already out there rather than starting from scratch? Solving a problem can be risky, costly, and take a lot of time to find, while making improvements to existing products might feel safer, but it can also be tough to compete with existing brands and those cheap Chinese seller items.

Which way would you lean?