Question 1

Innovation is an act of:

Accepted Answer

A) Luck 
B) Creativity 
C) Selfishness 
D) None of the above 
A) Luck 
B) Creativity 
C) Selfishness 
D) None of the above B

Question 2

Microsoft's war against Netscape in the browser industry, and GE's lead over EMI in the CT scanner industry show that:

Accepted Answer

A) Size matters 
B) First movers always win the battle 
C) No real outcome can be predicted 
D) Existing resources and capabilities are critical in a competition between high technology products 
A) Size matters 
B) First movers always win the battle 
C) No real outcome can be predicted 
D) Existing resources and capabilities are critical in a competition between high technology products D

Question 3

If a strong system of appropriability exists, the innovator:

Accepted Answer

A) Cannot capture a significant portion of the created value 
B) Cannot acquire the property rights of its innovation 
C) Can capture a significant portion of the created value 
D) Should try to sell its innovation to a large firm 
A) Cannot capture a significant portion of the created value 
B) Cannot acquire the property rights of its innovation 
C) Can capture a significant portion of the created value 
D) Should try to sell its innovation to a large firm C

Question 4

Licensing, joint ventures, and alliances, are examples of:

Accepted Answer

A) Alternative strategies to exploit innovation 
B) Alternative strategies to create inventions 
C) Alternative strategies to sell inventions to another firm in the industry 
D) Strategies involving third parties 
A) Alternative strategies to exploit innovation 
B) Alternative strategies to create inventions 
C) Alternative strategies to sell inventions to another firm in the industry 
D) Strategies involving third parties

Question 5

Strategic management of innovation and technological change

Accepted Answer

A) Cannot be managed 
B) Can contribute to a firm's competitive advantage 
C) Exists only in technology-intensive industries 
D) Tries to influence or direct technological change before it occurs 
A) Cannot be managed 
B) Can contribute to a firm's competitive advantage 
C) Exists only in technology-intensive industries 
D) Tries to influence or direct technological change before it occurs

Question 6

One key strategic challenge for fuel cell developers in the automobile industry is:

Accepted Answer

A) There is not enough political backing at the Federal level 
B) They lack financial resources 
C) They need the cooperation of many other specialized players 
D) The technology is not yet fuel-efficient 
A) There is not enough political backing at the Federal level 
B) They lack financial resources 
C) They need the cooperation of many other specialized players 
D) The technology is not yet fuel-efficient

Question 7

To win a standard war, a firm has to:

Accepted Answer

A) First identify the future standard and then assemble allies to win 
B) First recognize that the industry is coalescing around a single standard and then build a "bigger bandwagon" 
C) Wait, and try to network and lobby the Federal authorities 
D) Increase marketing and outreach 
A) First identify the future standard and then assemble allies to win 
B) First recognize that the industry is coalescing around a single standard and then build a "bigger bandwagon" 
C) Wait, and try to network and lobby the Federal authorities 
D) Increase marketing and outreach

Question 8

Network externalities are:

Accepted Answer

A) The set of effects related to the network organizational structure, where many firms are connected through loose but efficient linkages 
B) The idea that the value of a product for a customer depends on the number of other users of the same product 
C) The costs incurred outside a firm when these costs are a direct consequence of that firm's activity 
D) The set of events, facts, and trends taking place in a firm's environment and that may impact its strategy 
A) The set of effects related to the network organizational structure, where many firms are connected through loose but efficient linkages 
B) The idea that the value of a product for a customer depends on the number of other users of the same product 
C) The costs incurred outside a firm when these costs are a direct consequence of that firm's activity 
D) The set of events, facts, and trends taking place in a firm's environment and that may impact its strategy

Question 9

Surveys show patent protection appears to be the best protection of innovation, because it is enforced by law

Accepted Answer

A) True 
 B)False

Question 10

Research shows that across firms, R&D intensity and frequency of new product introductions tend to be positively correlated with profitability

Accepted Answer

A) True 
 B)False

Question 11

The best option to exploit innovation depends on several factors, including a firm's available resources and capabilities

Accepted Answer

A) True 
 B)False

Question 12

Research suggests that most inventions are the result of:

Accepted Answer

A) Large firms' R&D departments 
B) Small firms 
C) Small specialized research firms 
D) "Capital angels" who have invested in successful start-ups 
A) Large firms' R&D departments 
B) Small firms 
C) Small specialized research firms 
D) "Capital angels" who have invested in successful start-ups

Question 13

The example of Microsoft and its 1988 operating systems shows that:

Accepted Answer

A) The industry was facing uncertainty with regard to standards 
B) Microsoft was still the dominant player 
C) Alliances emerged to support different standards 
D) The industry was evolving accordingly to its lifecycle model 
A) The industry was facing uncertainty with regard to standards 
B) Microsoft was still the dominant player 
C) Alliances emerged to support different standards 
D) The industry was evolving accordingly to its lifecycle model

Question 14

If one compares the two concepts of invention and innovation, one would conclude that:

Accepted Answer

A) They are exactly the same 
B) They have nothing in common 
C) They describe two close but different phenomena 
D) Distinguishing the two concepts is a waste of time 
A) They are exactly the same 
B) They have nothing in common 
C) They describe two close but different phenomena 
D) Distinguishing the two concepts is a waste of time

Question 15

The choice of being a leader or a follower should depend on:

Accepted Answer

A) The extent of protection of the innovation, the nature of the knowledge involved, and the potential to establish a standard 
B) The development cost of the innovation, the importance of complementary resources, and the shape of the economy 
C) The extent of protection of the innovation, the potential to establish a standard, and the importance of complementary resources 
D) The potential to establish a standard, the relative powers of the other players in the industry, and the development cost of the innovation 
A) The extent of protection of the innovation, the nature of the knowledge involved, and the potential to establish a standard 
B) The development cost of the innovation, the importance of complementary resources, and the shape of the economy 
C) The extent of protection of the innovation, the potential to establish a standard, and the importance of complementary resources 
D) The potential to establish a standard, the relative powers of the other players in the industry, and the development cost of the innovation

Question 16

A standard is a format, an interface, or a closed system that does not allow interoperability

Accepted Answer

A) True 
 B)False

Question 17

How and why should a firm try to win a war over standards?

Accepted Answer

A standard is a format, interface, or a

Question 18

How do technology-based industries reveal a fundamental dilemma that many firms are facing?

Accepted Answer

The fundamental dilemma clearly apparent

Question 19

A process of active waiting describes:

Accepted Answer

A) A well-known formula for running successful restaurants 
B) A good fast second-entrant strategy 
C) A situation where a firm waits and acts simultaneously 
D) A contradiction in conflicting requirements that a firm cannot handle 
A) A well-known formula for running successful restaurants 
B) A good fast second-entrant strategy 
C) A situation where a firm waits and acts simultaneously 
D) A contradiction in conflicting requirements that a firm cannot handle

Question 20

Risk in emerging industries is created by the following factors:

Accepted Answer

A) Market and technological uncertainties 
B) Market and cost uncertainties 
C) Rivalry and political uncertainties 
D) Having different customer tastes in emerging countries from your home market 
A) Market and technological uncertainties 
B) Market and cost uncertainties 
C) Rivalry and political uncertainties 
D) Having different customer tastes in emerging countries from your home market

Innovation is an act of:

Microsoft's war against Netscape in the browser industry, and GE's lead over EMI in the CT scanner industry show that:

If a strong system of appropriability exists, the innovator:

Licensing, joint ventures, and alliances, are examples of:

Strategic management of innovation and technological change

One key strategic challenge for fuel cell developers in the automobile industry is:

To win a standard war, a firm has to:

Network externalities are:

Surveys show patent protection appears to be the best protection of innovation, because it is enforced by law

Research shows that across firms, R&D intensity and frequency of new product introductions tend to be positively correlated with profitability

The best option to exploit innovation depends on several factors, including a firm's available resources and capabilities

Research suggests that most inventions are the result of:

The example of Microsoft and its 1988 operating systems shows that:

If one compares the two concepts of invention and innovation, one would conclude that:

The choice of being a leader or a follower should depend on:

A standard is a format, an interface, or a closed system that does not allow interoperability

How and why should a firm try to win a war over standards?

How do technology-based industries reveal a fundamental dilemma that many firms are facing?

A process of active waiting describes:

Risk in emerging industries is created by the following factors:

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Nature and Sources of Competitive Advantage

Cost Advantage

Differentiation Advantage

Industry Evolution and Strategic Change

Competitive Advantage in Mature Industries

Vertical Integration and the Scope of the Firm

Global Strategies and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Management of the Multibusiness Firm

Current Trends in Strategic Management

Filters

Exam 12: Technology-Based Industries and the Management of Innovation

Innovation is an act of:

Microsoft's war against Netscape in the browser industry, and GE's lead over EMI in the CT scanner industry show that:

If a strong system of appropriability exists, the innovator:

Licensing, joint ventures, and alliances, are examples of:

Strategic management of innovation and technological change

One key strategic challenge for fuel cell developers in the automobile industry is:

To win a standard war, a firm has to:

Network externalities are:

Surveys show patent protection appears to be the best protection of innovation, because it is enforced by law

Research shows that across firms, R&D intensity and frequency of new product introductions tend to be positively correlated with profitability

The best option to exploit innovation depends on several factors, including a firm's available resources and capabilities

Research suggests that most inventions are the result of:

The example of Microsoft and its 1988 operating systems shows that:

If one compares the two concepts of invention and innovation, one would conclude that:

The choice of being a leader or a follower should depend on:

A standard is a format, an interface, or a closed system that does not allow interoperability

How and why should a firm try to win a war over standards?

How do technology-based industries reveal a fundamental dilemma that many firms are facing?

A process of active waiting describes:

Risk in emerging industries is created by the following factors:

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Nature and Sources of Competitive Advantage

Cost Advantage

Differentiation Advantage

Industry Evolution and Strategic Change

Competitive Advantage in Mature Industries

Vertical Integration and the Scope of the Firm

Global Strategies and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Management of the Multibusiness Firm

Current Trends in Strategic Management

Filters