Question 1

The following industry offers a strong regime of appropriability for innovators:

Accepted Answer

A) Financial services 
B) Processed food products 
C) Pharmaceuticals 
D) Handheld mobile devices. 
A) Financial services 
B) Processed food products 
C) Pharmaceuticals 
D) Handheld mobile devices.

Question 2

Invention and innovation are essentially the same.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Being the leader in introducing an innovation to the market is usually better than being a follower.

Accepted Answer

A) True 
 B)False

Question 5

Network externalities in smartphones arise primarily from:

Accepted Answer

A) Direct user-to-user externalities 
B) The availability of complementary products 
C) The popularity of the Apple iPhone 
D) Google's decision to make its Android operating system open source 
A) Direct user-to-user externalities 
B) The availability of complementary products 
C) The popularity of the Apple iPhone 
D) Google's decision to make its Android operating system open source

Question 6

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 7

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 8

Empirical research shows that for both product and process innovations,patents are more effective at protecting innovation than secrecy.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about the relationship between innovation and invention are correct?

Accepted Answer

A) Invention is often the result of an individual's efforts;innovation typically involves business organizations 
B) Intellectual property law offers greater protection to innovation than to invention 
C) Complementary resources are more important in supporting invention than in supporting innovation 
D) Innovation requires genius,invention requires practical insight. 
A) Invention is often the result of an individual's efforts;innovation typically involves business organizations 
B) Intellectual property law offers greater protection to innovation than to invention 
C) Complementary resources are more important in supporting invention than in supporting innovation 
D) Innovation requires genius,invention requires practical insight.

Question 10

If technological breakthroughs increase the feasibility of fuel cells as a means of propulsion for vehicles,the profits that can be earned from the developers of the fuel cell technology will be limited by:

Accepted Answer

A) The greater environmental attractiveness of battery-powered electric vehicles 
B) The dependence of fuel cell technology on specialized investments by auto makers in designing new cars and fuel suppliers in supplying hydrogen refueling facilities 
C) The likely ineffectiveness of patents relating to fuel cells 
D) Lack of interest in vehicle owners in fuel cell technology 
A) The greater environmental attractiveness of battery-powered electric vehicles 
B) The dependence of fuel cell technology on specialized investments by auto makers in designing new cars and fuel suppliers in supplying hydrogen refueling facilities 
C) The likely ineffectiveness of patents relating to fuel cells 
D) Lack of interest in vehicle owners in fuel cell technology

Question 11

When network externalities are present in a market,the typical outcome is:

Accepted Answer

A) A winner-take-all market 
B) Monopolistic abuse requiring antitrust intervention 
C) More rapid technological innovation 
D) Lack of consumer choice 
A) A winner-take-all market 
B) Monopolistic abuse requiring antitrust intervention 
C) More rapid technological innovation 
D) Lack of consumer choice

Question 12

Network externalities exist when the value of a product to an individual depends on the number of other users.

Accepted Answer

A) True 
 B)False

Question 13

An innovator may fail to earn any significant returns from an innovation if:

Accepted Answer

A) The innovation fails to create value for users 
B) The innovator is unable to appropriate the value the innovation creates 
C) Both (a)and (b)are present 
D) If either (a)or (c)is present. 
A) The innovation fails to create value for users 
B) The innovator is unable to appropriate the value the innovation creates 
C) Both (a)and (b)are present 
D) If either (a)or (c)is present.

Question 14

The market share leadership in smartphone operating systems possessed by Google's Android operating system reveals:

Accepted Answer

A) It's generally better to be a follower than a first mover 
B) In digital markets where network externalities are present,Google's huge user base typically gives it a huge advantage over rivals 
C) Where network externalities are present,an open source strategy can often be effective in undermining a competitor's market share lead 
D) Strength in complementary resources and capabilities can allow a strong company to overcome the initial lead of an early innovator. 
A) It's generally better to be a follower than a first mover 
B) In digital markets where network externalities are present,Google's huge user base typically gives it a huge advantage over rivals 
C) Where network externalities are present,an open source strategy can often be effective in undermining a competitor's market share lead 
D) Strength in complementary resources and capabilities can allow a strong company to overcome the initial lead of an early innovator.

Question 15

Willie Wonka's (Charlie and the Chocolate Factory)commitment to secrecy suggests that his innovative candies probably lacked patent protection.

Accepted Answer

A) True 
 B)False

Question 16

During recent years,the cycle of innovation (from initial knowledge generation to final diffusion)has:

Accepted Answer

A) Got faster 
B) Got slower 
C) Become more global 
D) Become more uncertain 
A) Got faster 
B) Got slower 
C) Become more global 
D) Become more uncertain

Question 17

A shopping mall provides an interface between two types of customer: the retailers which lease retail stores and the consumers that shop at these stores.Hence a shopping mall may be regarded as a platform.

Accepted Answer

A) True 
 B)False

Question 18

A company may seek to patent an invention even if it has no intentions of commercializing it.Which of the following is not an important reason for such strategic patenting?

Accepted Answer

A) To block competitors' opportunities for innovation 
B) To generate licensing revenue 
C) To increase the company's bargaining power when negotiating cross-licensing deals with other companies 
D) To enhance the individual reputations of the company's leading scientists and technologists 
A) To block competitors' opportunities for innovation 
B) To generate licensing revenue 
C) To increase the company's bargaining power when negotiating cross-licensing deals with other companies 
D) To enhance the individual reputations of the company's leading scientists and technologists

Question 19

It is difficult to be successful as a first mover unless your innovation has strong patent protection.

Accepted Answer

A) True 
 B)False

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 following industry offers a strong regime of appropriability for innovators:

Invention and innovation are essentially the same.

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:

Being the leader in introducing an innovation to the market is usually better than being a follower.

Network externalities in smartphones arise primarily from:

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

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

Empirical research shows that for both product and process innovations,patents are more effective at protecting innovation than secrecy.

Which of the following statements about the relationship between innovation and invention are correct?

If technological breakthroughs increase the feasibility of fuel cells as a means of propulsion for vehicles,the profits that can be earned from the developers of the fuel cell technology will be limited by:

When network externalities are present in a market,the typical outcome is:

Network externalities exist when the value of a product to an individual depends on the number of other users.

An innovator may fail to earn any significant returns from an innovation if:

The market share leadership in smartphone operating systems possessed by Google's Android operating system reveals:

Willie Wonka's (Charlie and the Chocolate Factory)commitment to secrecy suggests that his innovative candies probably lacked patent protection.

During recent years,the cycle of innovation (from initial knowledge generation to final diffusion)has:

A shopping mall provides an interface between two types of customer: the retailers which lease retail stores and the consumers that shop at these stores.Hence a shopping mall may be regarded as a platform.

A company may seek to patent an invention even if it has no intentions of commercializing it.Which of the following is not an important reason for such strategic patenting?

It is difficult to be successful as a first mover unless your innovation has strong patent protection.

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

A : The Sources and Dimensions of Competitive Advantage

B :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 following industry offers a strong regime of appropriability for innovators:

Invention and innovation are essentially the same.

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:

Being the leader in introducing an innovation to the market is usually better than being a follower.

Network externalities in smartphones arise primarily from:

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

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

Empirical research shows that for both product and process innovations,patents are more effective at protecting innovation than secrecy.

Which of the following statements about the relationship between innovation and invention are correct?

If technological breakthroughs increase the feasibility of fuel cells as a means of propulsion for vehicles,the profits that can be earned from the developers of the fuel cell technology will be limited by:

When network externalities are present in a market,the typical outcome is:

Network externalities exist when the value of a product to an individual depends on the number of other users.

An innovator may fail to earn any significant returns from an innovation if:

The market share leadership in smartphone operating systems possessed by Google's Android operating system reveals:

Willie Wonka's (Charlie and the Chocolate Factory)commitment to secrecy suggests that his innovative candies probably lacked patent protection.

During recent years,the cycle of innovation (from initial knowledge generation to final diffusion)has:

A shopping mall provides an interface between two types of customer: the retailers which lease retail stores and the consumers that shop at these stores.Hence a shopping mall may be regarded as a platform.

A company may seek to patent an invention even if it has no intentions of commercializing it.Which of the following is not an important reason for such strategic patenting?

It is difficult to be successful as a first mover unless your innovation has strong patent protection.

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

A : The Sources and Dimensions of Competitive Advantage

B :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