Question 1

The "regime of appropriability" refers to the extent to which the innovator can appropriate value i.e., make a profit.

Accepted Answer

A) True 
 B)False

Question 2

The inventing or innovation-initiating team should be managed

Accepted Answer

A) with the same discipline that any other company department is subject to. 
B) in a way which is probably less restrictive or hierarchical than the rest of the company. 
C) more strictly than other departments, to prevent creative people losing direction. 
D) in accordance with a target-driven, methodical philosophy. 
A) with the same discipline that any other company department is subject to. 
B) in a way which is probably less restrictive or hierarchical than the rest of the company. 
C) more strictly than other departments, to prevent creative people losing direction. 
D) in accordance with a target-driven, methodical philosophy.

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.

Question 4

One problem with innovation in large, rigidly procedural firms is that

Accepted Answer

A) innovation tends to be resisted. 
B) innovation is seen as unimportant. 
C) there is less need to innovate. 
D) none of the above; large firms are just as innovation-friendly as small ones. 
A) innovation tends to be resisted. 
B) innovation is seen as unimportant. 
C) there is less need to innovate. 
D) none of the above; large firms are just as innovation-friendly as small ones.

Question 5

An innovation is more likely to diffuse more quickly throughout an industry if it is perceived as worth imitating by competitors.

Accepted Answer

A) True 
 B)False

Question 6

Network externalities exist when

Accepted Answer

A) the value of a product for a customer lies in how many others he can connect to. 
B) the value of a product for a customer depends significantly on the number of other users of the same product. 
C) there are large benefits to other customers. 
D) there are huge drawbacks for other customers. 
A) the value of a product for a customer lies in how many others he can connect to. 
B) the value of a product for a customer depends significantly on the number of other users of the same product. 
C) there are large benefits to other customers. 
D) there are huge drawbacks for other customers.

Question 7

The essence to winning a standards war is

Accepted Answer

A) having the best technology. 
B) building a strong market presence, and some powerful allies - complementers and leading customers. 
C) owning the most intellectual property. 
D) simply being the first in the market. 
A) having the best technology. 
B) building a strong market presence, and some powerful allies - complementers and leading customers. 
C) owning the most intellectual property. 
D) simply being the first in the market.

Question 8

A patent is usually the best protection for an innovation.

Accepted Answer

A) This statement is correct. 
B) No one can confirm or disprove this statement. 
C) It depends. 
D) This statement is incorrect. 
A) This statement is correct. 
B) No one can confirm or disprove this statement. 
C) It depends. 
D) This statement is incorrect.

Question 9

Technology is NOT very important to established, mature industries.

Accepted Answer

A) True 
 B)False

Question 10

The determinants of the choice between a leader versus a follower strategy are

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 11

To determine the amount of the value created between players appropriated by the innovator, 4 factors are critical:

Accepted Answer

A) complementary resources, tacitness and complexity of technology, corporate culture, and HR management. 
B) property rights, tacitness and complexity of technology, lead-time, and complementary resources. 
C) tacitness and complexity of technology, lead-time, excellence of top management teams, and luck. 
D) lead-time, complementary resources, relative bargaining power, and structure of the industry. 
A) complementary resources, tacitness and complexity of technology, corporate culture, and HR management. 
B) property rights, tacitness and complexity of technology, lead-time, and complementary resources. 
C) tacitness and complexity of technology, lead-time, excellence of top management teams, and luck. 
D) lead-time, complementary resources, relative bargaining power, and structure of the industry.

Question 12

The difference between "evolutionary" and "revolutionary" standards strategies is

Accepted Answer

A) revolutionary strategies are more dramatic, and so more effective. 
B) evolutionary strategies maintain compatibility with what went before. 
C) revolutionary strategies are more likely to gain investor attention. 
D) revolutionary strategies show greater determination and commitment. 
A) revolutionary strategies are more dramatic, and so more effective. 
B) evolutionary strategies maintain compatibility with what went before. 
C) revolutionary strategies are more likely to gain investor attention. 
D) revolutionary strategies show greater determination and commitment.

Question 13

Lead-time in this context refers to

Accepted Answer

A) the period of time during which a firm is the leader of an industry. 
B) the period of time it takes for equipment to arrive after it's been ordered. 
C) the time it takes a follower to catch up. 
D) the time it takes for a competitor to realise you've done something innovative. 
A) the period of time during which a firm is the leader of an industry. 
B) the period of time it takes for equipment to arrive after it's been ordered. 
C) the time it takes a follower to catch up. 
D) the time it takes for a competitor to realise you've done something innovative.

Question 14

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) customer tastes and technology development costs. 
A) market and technological uncertainties. 
B) market and cost uncertainties. 
C) rivalry and political uncertainties. 
D) customer tastes and technology development costs.

Question 15

Those firms who spend more on research and development are nearly always more successful at making profit from innovation.

Accepted Answer

A) True 
 B)False

Question 16

One huge potential problem with licensing is

Accepted Answer

A) the licensee may seek to imitate the innovation themselves. 
B) the innovator is wholly dependent on the licensee's commitment and effectiveness. 
C) the innovator cannot issue another licence. 
D) the licensee may be a bad payer. 
A) the licensee may seek to imitate the innovation themselves. 
B) the innovator is wholly dependent on the licensee's commitment and effectiveness. 
C) the innovator cannot issue another licence. 
D) the licensee may be a bad payer.

Question 17

Companies that own industry standards earn about the same returns as those companies with other competitive advantages.

Accepted Answer

A) True 
 B)False

Question 18

The value created by an innovation is

Accepted Answer

A) shared equally among the players. 
B) determined by customer loyalty. 
C) captured by the player possessing the largest market share of the industry. 
D) distributed amongst the various players involved in no certain way. 
A) shared equally among the players. 
B) determined by customer loyalty. 
C) captured by the player possessing the largest market share of the industry. 
D) distributed amongst the various players involved in no certain way.

Question 19

The only way to cope with true uncertainty is

Accepted Answer

A) to be flexible enough to quickly react to the unexpected. 
B) prepare multiple scenario plans. 
C) to construct a computer model simulation. 
D) to calculate all the risks and analyse the chances of success in a spreadsheet model. 
A) to be flexible enough to quickly react to the unexpected. 
B) prepare multiple scenario plans. 
C) to construct a computer model simulation. 
D) to calculate all the risks and analyse the chances of success in a spreadsheet model.

Question 20

Complexity of technology relates to lead-time to catch up because

Accepted Answer

A) the more complex the design and technology, the longer it will take to replicate. 
B) complex products tend to be subject to a long lead-time for delivery. 
C) it takes even experts a long time to understand complex theory. 
D) competitors are reluctant to get involved in complex issues, if they know they're complex. 
A) the more complex the design and technology, the longer it will take to replicate. 
B) complex products tend to be subject to a long lead-time for delivery. 
C) it takes even experts a long time to understand complex theory. 
D) competitors are reluctant to get involved in complex issues, if they know they're complex.

The "regime of appropriability" refers to the extent to which the innovator can appropriate value i.e., make a profit.

The inventing or innovation-initiating team should be managed

If a strong system of appropriability exists, the innovator

One problem with innovation in large, rigidly procedural firms is that

An innovation is more likely to diffuse more quickly throughout an industry if it is perceived as worth imitating by competitors.

Network externalities exist when

The essence to winning a standards war is

A patent is usually the best protection for an innovation.

Technology is NOT very important to established, mature industries.

The determinants of the choice between a leader versus a follower strategy are

To determine the amount of the value created between players appropriated by the innovator, 4 factors are critical:

The difference between "evolutionary" and "revolutionary" standards strategies is

Lead-time in this context refers to

Risk in emerging industries is created by the following factors:

Those firms who spend more on research and development are nearly always more successful at making profit from innovation.

One huge potential problem with licensing is

Companies that own industry standards earn about the same returns as those companies with other competitive advantages.

The value created by an innovation is

The only way to cope with true uncertainty is

Complexity of technology relates to lead-time to catch up because

The Concept of Stategy

Industry Analysis

Resources and Capabilities

The Nature and Sources of Competitive

Industry Evolution and Strategic Change

Corporate Stategy

Realizing Stategy

Global Strategies and the Multinational Corporation

Corporate Responsibility

Filters

Exam 6: Technology-Based Industries and the Management of Innovation

The "regime of appropriability" refers to the extent to which the innovator can appropriate value i.e., make a profit.

The inventing or innovation-initiating team should be managed

If a strong system of appropriability exists, the innovator

One problem with innovation in large, rigidly procedural firms is that

An innovation is more likely to diffuse more quickly throughout an industry if it is perceived as worth imitating by competitors.

Network externalities exist when

The essence to winning a standards war is

A patent is usually the best protection for an innovation.

Technology is NOT very important to established, mature industries.

The determinants of the choice between a leader versus a follower strategy are

To determine the amount of the value created between players appropriated by the innovator, 4 factors are critical:

The difference between "evolutionary" and "revolutionary" standards strategies is

Lead-time in this context refers to

Risk in emerging industries is created by the following factors:

Those firms who spend more on research and development are nearly always more successful at making profit from innovation.

One huge potential problem with licensing is

Companies that own industry standards earn about the same returns as those companies with other competitive advantages.

The value created by an innovation is

The only way to cope with true uncertainty is

Complexity of technology relates to lead-time to catch up because

The Concept of Stategy

Industry Analysis

Resources and Capabilities

The Nature and Sources of Competitive

Industry Evolution and Strategic Change

Corporate Stategy

Realizing Stategy

Global Strategies and the Multinational Corporation

Corporate Responsibility

Filters