Question 1

The primary consideration in managing the risks of innovation is minimizing commitments in order to maximize flexibility.

Accepted Answer

A) True 
 B)False

Question 2

A firm has an innovation that has weak patent protection, but its exploitation requires a number of complementary resources that it does not possess.It's best mode of exploiting the innovation is likely to be:

Accepted Answer

A) Licensing 
B) Joint venture 
C) Internal commercialization 
D) Acquiring a company that does possess the required complementary resources. 
A) Licensing 
B) Joint venture 
C) Internal commercialization 
D) Acquiring a company that does possess the required complementary resources.

Question 3

The principal difference between public and private standards is:

Accepted Answer

A) Standards set by public firms vs.standards established by privately-owned companies 
B) Standards established by governments vs.standards set by companies 
C) Standards available for all organizations and industry players vs.standards owned by firms or individuals 
D) Free standards vs.standards users have to pay for 
A) Standards set by public firms vs.standards established by privately-owned companies 
B) Standards established by governments vs.standards set by companies 
C) Standards available for all organizations and industry players vs.standards owned by firms or individuals 
D) Free standards vs.standards users have to pay for

Question 4

Open innovation is based upon the assumption that although there are huge gains from collaborative knowledge sourcing; these gains can be outweighed by risks outsiders expropriating one's own knowledge.

Accepted Answer

A) True 
 B)False

Question 5

Cross functional product development teams, product champions, and incubators are organizational devices used:

Accepted Answer

A) By top managers to control the technological development of their firms 
B) To reconcile the conflicting requirements of operations and innovation 
C) To build new organizational structures, inspired by innovation in high-tech industries 
D) To reconcile coordination and specialization needs 
A) By top managers to control the technological development of their firms 
B) To reconcile the conflicting requirements of operations and innovation 
C) To build new organizational structures, inspired by innovation in high-tech industries 
D) To reconcile coordination and specialization needs

Question 6

Across most industries patents offer the greater protection to product innovations than to process innovations.

Accepted Answer

A) True 
 B)False

Question 7

The main lesson learned from the standards wars involving VHS and Betamax in VCRs and between the Apple Mac and IBM PC in personal computers was that liberal licensing of technology is the key to building market leadership.

Accepted Answer

A) True 
 B)False

Question 8

For "creative abrasion" to be effective in facilitating new product development, it requires:

Accepted Answer

A) Creating a working environment where assertive individualism is cultivated 
B) Establishing strong financial incentives for individual creativity 
C) Establishing forums where conventions of politeness and respect are temporarily abandoned but criticisms are directed at the product not at individuals 
D) Establishing a strong sense of community so that team members are not alienated, even when they disagree 
A) Creating a working environment where assertive individualism is cultivated 
B) Establishing strong financial incentives for individual creativity 
C) Establishing forums where conventions of politeness and respect are temporarily abandoned but criticisms are directed at the product not at individuals 
D) Establishing a strong sense of community so that team members are not alienated, even when they disagree

Question 9

When reliable forecasting is impossible, the innovating firm should seek to manage risk through:

Accepted Answer

A) Committing to a well-defined strategy 
B) Devotion itself to serving its customers 
C) Building relations with investors 
D) Avoiding commitments in order to maximize flexibility 
A) Committing to a well-defined strategy 
B) Devotion itself to serving its customers 
C) Building relations with investors 
D) Avoiding commitments in order to maximize flexibility

Question 10

The 1949 quotation that "computers in the future may…weigh only 1.5 tons" indicates:

Accepted Answer

A) Engineers are generally very poor at forecasting 
B) It is difficult to forecast the development of technology more than a few years ahead 
C) The lack of communication among technologists-the prediction fails to recognize that the transistor had been invented in 1947 
D) The acceleration of technological change during the second half of the 20th century. 
A) Engineers are generally very poor at forecasting 
B) It is difficult to forecast the development of technology more than a few years ahead 
C) The lack of communication among technologists-the prediction fails to recognize that the transistor had been invented in 1947 
D) The acceleration of technological change during the second half of the 20th century.

Question 11

Lead-time refers to:

Accepted Answer

A) The period of time during which a firm is the leader of an industry 
B) The period of time during which a firm has discovered the largest number of innovations 
C) The time it takes followers to catch up 
D) None of the above 
A) The period of time during which a firm is the leader of an industry 
B) The period of time during which a firm has discovered the largest number of innovations 
C) The time it takes followers to catch up 
D) None of the above

Question 12

It may be preferable for government to intervene to impose a public standard rather than let a private, de facto standard be determined through competition because:

Accepted Answer

A) Governments are superior to markets in selecting the best technology 
B) A private, de facto standard can take a long time to become established, thereby delaying the adoption of a new technology 
C) Competition is always wasteful 
D) De facto standards tend to be set by US companies 
A) Governments are superior to markets in selecting the best technology 
B) A private, de facto standard can take a long time to become established, thereby delaying the adoption of a new technology 
C) Competition is always wasteful 
D) De facto standards tend to be set by US companies

Question 13

Comparing the development of the jet engine to satellite-based global positioning (GPS) and instant messaging illustrates that:

Accepted Answer

A) Invention always precedes innovation 
B) Financial resources are critical to introduce successful innovations 
C) The innovation cycle has speeded up over time 
D) Digital technology has fundamentally changed the nature of innovation 
A) Invention always precedes innovation 
B) Financial resources are critical to introduce successful innovations 
C) The innovation cycle has speeded up over time 
D) Digital technology has fundamentally changed the nature of innovation

Question 14

The principal difference between invention and innovation is:

Accepted Answer

A) Invention requires an inventor, innovation requires no individual person 
B) You must innovate before you invent 
C) Invention is the creation of a new device or process, innovation is its commercialization 
D) An invention can be patented and hence earn royalties. 
A) Invention requires an inventor, innovation requires no individual person 
B) You must innovate before you invent 
C) Invention is the creation of a new device or process, innovation is its commercialization 
D) An invention can be patented and hence earn royalties.

Question 15

The more an innovative product embodies multiple technologies owned by different companies:

Accepted Answer

A) The less useful are patents to the innovating firm 
B) The more important it is for the innovating firm to develop capabilities that span a wide range of technologies 
C) The more important it is for the innovating firm to possess a strong patent portfolio that enhances its bargaining power with other technology-owning firms 
D) The more difficult it is for the innovating form to launch its innovation 
A) The less useful are patents to the innovating firm 
B) The more important it is for the innovating firm to develop capabilities that span a wide range of technologies 
C) The more important it is for the innovating firm to possess a strong patent portfolio that enhances its bargaining power with other technology-owning firms 
D) The more difficult it is for the innovating form to launch its innovation

Question 16

The personal computer created a huge amount of value for users.The companies that profited most from the personal computer were:

Accepted Answer

A) The innovators 
B) The followers 
C) The suppliers 
D) None of the above 
A) The innovators 
B) The followers 
C) The suppliers 
D) None of the above

Question 17

Which of the following factors does not contribute to the attractiveness of licensing provides as a means of exploiting an innovation:

Accepted Answer

A) The innovating firm possesses most of the complementary resources needed to exploit the innovation 
B) Patent are strong 
C) The potential for the innovation to enhance the performance of existing products has been clearly demonstrated 
D) The innovation has potential applications is several different industries 
A) The innovating firm possesses most of the complementary resources needed to exploit the innovation 
B) Patent are strong 
C) The potential for the innovation to enhance the performance of existing products has been clearly demonstrated 
D) The innovation has potential applications is several different industries

Question 18

Standards are important in an industry because:

Accepted Answer

A) They allow interoperability and industry growth, and are linked with network externalities 
B) They are established by the dominant player in the industry 
C) They are imposed by the government and have the force of law behind them 
D) High-tech industries are the only industries that cannot effectively function without standards 
A) They allow interoperability and industry growth, and are linked with network externalities 
B) They are established by the dominant player in the industry 
C) They are imposed by the government and have the force of law behind them 
D) High-tech industries are the only industries that cannot effectively function without standards

Question 19

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

Accepted Answer

A) The extent of legal 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 profitability of the industry in which the innovation is to be applied 
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 legal 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 profitability of the industry in which the innovation is to be applied 
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 20

The argument that patents are the most effective protection for an innovation is:

Accepted Answer

A) Proven by a century of evidence 
B) Impossible to confirm or disprove 
C) Shown to be true only in a few industries 
D) True for process innovations, but not for product innovations 
A) Proven by a century of evidence 
B) Impossible to confirm or disprove 
C) Shown to be true only in a few industries 
D) True for process innovations, but not for product innovations

The primary consideration in managing the risks of innovation is minimizing commitments in order to maximize flexibility.

A firm has an innovation that has weak patent protection, but its exploitation requires a number of complementary resources that it does not possess.It's best mode of exploiting the innovation is likely to be:

The principal difference between public and private standards is:

Open innovation is based upon the assumption that although there are huge gains from collaborative knowledge sourcing; these gains can be outweighed by risks outsiders expropriating one's own knowledge.

Cross functional product development teams, product champions, and incubators are organizational devices used:

Across most industries patents offer the greater protection to product innovations than to process innovations.

The main lesson learned from the standards wars involving VHS and Betamax in VCRs and between the Apple Mac and IBM PC in personal computers was that liberal licensing of technology is the key to building market leadership.

For "creative abrasion" to be effective in facilitating new product development, it requires:

When reliable forecasting is impossible, the innovating firm should seek to manage risk through:

The 1949 quotation that "computers in the future may…weigh only 1.5 tons" indicates:

Lead-time refers to:

It may be preferable for government to intervene to impose a public standard rather than let a private, de facto standard be determined through competition because:

Comparing the development of the jet engine to satellite-based global positioning (GPS) and instant messaging illustrates that:

The principal difference between invention and innovation is:

The more an innovative product embodies multiple technologies owned by different companies:

The personal computer created a huge amount of value for users.The companies that profited most from the personal computer were:

Which of the following factors does not contribute to the attractiveness of licensing provides as a means of exploiting an innovation:

Standards are important in an industry because:

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

The argument that patents are the most effective protection for an innovation is:

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Sources and Dimensions of Competitive Advantage

Industry Evolution and Strategic Change

Vertical Integration and the Scope of the Firm

Global Strategy and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Managing the Multibusiness Firm

External Growth Strategies: Mergers, Acquisitions, and Alliances

Current Trends in Strategic Management

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Exam 9: Technology-Based Industries and the Management of Innovation

The primary consideration in managing the risks of innovation is minimizing commitments in order to maximize flexibility.

A firm has an innovation that has weak patent protection, but its exploitation requires a number of complementary resources that it does not possess.It's best mode of exploiting the innovation is likely to be:

The principal difference between public and private standards is:

Open innovation is based upon the assumption that although there are huge gains from collaborative knowledge sourcing; these gains can be outweighed by risks outsiders expropriating one's own knowledge.

Cross functional product development teams, product champions, and incubators are organizational devices used:

Across most industries patents offer the greater protection to product innovations than to process innovations.

The main lesson learned from the standards wars involving VHS and Betamax in VCRs and between the Apple Mac and IBM PC in personal computers was that liberal licensing of technology is the key to building market leadership.

For "creative abrasion" to be effective in facilitating new product development, it requires:

When reliable forecasting is impossible, the innovating firm should seek to manage risk through:

The 1949 quotation that "computers in the future may…weigh only 1.5 tons" indicates:

Lead-time refers to:

It may be preferable for government to intervene to impose a public standard rather than let a private, de facto standard be determined through competition because:

Comparing the development of the jet engine to satellite-based global positioning (GPS) and instant messaging illustrates that:

The principal difference between invention and innovation is:

The more an innovative product embodies multiple technologies owned by different companies:

The personal computer created a huge amount of value for users.The companies that profited most from the personal computer were:

Which of the following factors does not contribute to the attractiveness of licensing provides as a means of exploiting an innovation:

Standards are important in an industry because:

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

The argument that patents are the most effective protection for an innovation is:

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Sources and Dimensions of Competitive Advantage

Industry Evolution and Strategic Change

Vertical Integration and the Scope of the Firm

Global Strategy and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Managing the Multibusiness Firm

External Growth Strategies: Mergers, Acquisitions, and Alliances

Current Trends in Strategic Management

Filters