Deck 13: Harnessing the Engine of Global Innovation

Question 1

Companies encourage intrapreneurs to propose new ideas and solutions, rewarding them with seed money to develop and grow their ideas.

Answer 1

True

Question 2

Some companies actively seek patents that they can purchase because they want to speed up their own R&D efforts.

Answer 2

True

Question 3

Significant differences in property rights around the globe make the world flatter with respect to innovation.

Answer 3

False

Question 4

Companies undertake R&D in order to develop new products, services, or procedures that will help them grow and expand their operations.

Question 5

Government investments in infrastructure that support new technology provide insignificant returns in terms of promoting innovation.

Question 6

Some companies obtain patents mainly to license or sell them to others, thus making money from their inventions without having to manufacture or service anything themselves.

Question 7

An innovation becomes an invention when people are willing to buy it in high enough numbers that result in benefits for the firm.

Question 8

Governments provide tax credit to corporations to encourage them to invest in R&D in their countries.

Question 9

A trade secret may relate to technical matters, such as the composition or design of a product, a method of manufacture, or the know-how necessary to perform a particular operation.

Question 10

Patents automatically guarantee a favourable decision every time the owner is forced to defend the invention in court.

Question 11

It is not mandatory for a company to reveal the details of the invention in order to get a patent.

Question 12

In some cases, the lead users even precede a company when it comes to making breakthrough innovations.

Question 13

It is Harder to take advantage of foreign countries' knowledge if one is not located there because culture, geography, and secrecy make knowledge Harder to diffuse across international borders.

Question 14

Small businesses often find that trademarks and copyrights are an expensive way to protect their products and services.

Question 15

A low price product can be highly profitable if the seller is organized to deliver value.

Question 16

The system of law related to R&D and innovation is referred to as intellectual property rights.

Question 17

A significant amount of innovation yields no new products or services because of R&D failure.

Question 18

Defending a patent is relatively inexpensive even entrepreneurs can afford it.

Question 19

A government can fund R&D directly, by offering grants to universities and research centers.

Question 20

Innovation hubs usually have a specific industry focus.

Question 21

Which of the following statements is true for an innovation hub?

A)It refers to a geographic region that contains a cluster of company R&D centers, universities, and government research institutes in close proximity.
B)It refers to the virtual concentration of manufacturers, company R&D centers, dealers and distributors dealing with the same products.
C)It refers to the pooling of resources for research and development by countries producing and exporting the same kind of products.
D)It refers to the R&D centers set up by the governments that finance ideas of independent individuals and organizations alike.
E)It refers to a conglomeration of organizations who share cutting-edge technology and latest business practices for mutual benefit.

Question 22

Which of the following statements is true about R&D?

A)Companies invest in R&D to gain a pipeline of new products.
B)Corporate R&D began in the United States with Luis Walter Alvarez.
C)Edison's patents had more to do with individual genius and less to do with management genius.
D)R&D refers to two independent processes of identifying new ideas and copying them for multiple companies.
E)Bringing management discipline to R&D restricts invention by limiting the creative genius of employees.

Question 23

Which of the following statements is true for Research and Development?

A)It refers to the process of promoting the use of scientific knowledge in forecasting the demand for different products in the market.
B)It refers to the process of identifying new ideas and turning them into tangible products or processes.
C)It refers to the pursuit of investigations without commercial goals, focusing on unravelling the secrets of nature.
D)It refers to the use of technology in trying to understand the latent needs and preferences of the customers in the market.
E)It refers to any confidential business information which provides an enterprise with a competitive edge.

Question 24

Which of the following statements is true for an invention?

A)It refers to converting a new idea into revenues and profits.
B)It refers to the use of technology in trying to understand the latent needs and preferences of the customers in the market.
C)It refers to pursuing scientific investigations without commercial goals, focusing on unravelling the secrets of nature and finding new knowledge.
D)It refers to the process of promoting the use of scientific knowledge in forecasting the demand for different products in the market.
E)It refers to bringing an idea into tangible reality by embodying it as a product or system.

Question 25

Social media technology plays a key role in innovation in an organization as it enables innovative ideas to be shared and discussed by employees at all levels.

Question 26

Which of the following statements is true for basic research?

A)It refers to accumulating knowledge necessary to determine the means by which a recognized and specific need may be met.
B)It refers to the use of technology to understand the latent needs and preferences of the customers in the market.
C)It refers to the pursuit of scientific investigations without commercial goals, focusing on unravelling the secrets of nature and finding new knowledge.
D)It refers to the process of promoting the use of scientific knowledge in forecasting the demands of different products in the market.
E)It refers to establishing an infallible supply chain network by incorporating the best practices in channel distribution.

Question 27

Which of the following statements is true for innovation?

A)It refers to converting a new idea into revenues and profits.
B)It refers to the use of technology to understand the latent needs and preferences of the customers in the market.
C)It refers to pursuing scientific investigations without commercial goals, focusing on unravelling the secrets of nature and finding new knowledge.
D)It refers to the process of promoting the use of scientific knowledge in forecasting the demands of different products in the market.
E)It refers to bringing an idea into tangible reality by embodying it as a product or system.

Question 28

One of the features common to both open innovation and user-led innovation is the important and integral role played by social networks.

Question 29

Which of the following statements holds true for licensing?

A)It refers to the exclusive right granted for an invention, which must be industrially applicable (useful), be new (novel), and exhibit a sufficient "inventive step" (be nonobvious).
B)It refers to a situation where the owner of an asset grants the right to use the asset to another, while continuing to retain ownership of the asset.
C)It refers to a distinctive sign, which identifies certain goods or services as those produced or provided by a specific person or enterprise.
D)It refers to the body of laws that grants authors, artists, and other creators protection for their literary and artistic creations, which are generally referred to as "works."
E)It refers to any confidential business information which provides an enterprise with a competitive edge.

Question 30

Social capital refers to the set of relationships among people.

Question 31

While social network and social capital can be associated with many things, they are not important sources of innovation.

Question 32

Knowledge spillover refers to:

A)the irrelevant business information that is accumulated in the organizations in the course of gathering business intelligence from the market.
B)the gradual dissemination of ideas that is generated in one part of the organizational structure, to different parts of the organization.
C)an informal exchange of ideas among individuals that helps individuals understand the state of the art in their field.
D)illegal accessing of confidential company information by rival organizations as a part of industrial espionage.
E)financially and technologically unfeasible ideas generated in the innovation hubs.

Question 33

_____ refers to creations of the mind-inventions, literary and artistic works, and symbols, names, and images used in commerce.

A)Patent
B)License
C)Intellectual property
D)Trademark
E)Copyright

Question 34

The technique of small-portion packaging, that originated from powdered soaps and shampoos sold in packets in India for two to four cents each, is called "_____."

A)miniature marketing
B)catalog marketing
C)sachet marketing
D)emerging marketing
E)internal marketing

Question 35

The partnership between IBM researchers and outside experts from government, universities, and even other companies is termed as _____.

A)competitive
B)collaboratory
C)public
D)collectivistic
E)private

Question 36

Which of the following statements holds true for a trade secret?

A)It refers to the exclusive right granted for an invention, which must be industrially applicable (useful)and new (novel), and exhibit a sufficient "inventive step" (be nonobvious).
B)It refers to a situation where the owner of an asset grants the right to use the asset to another, while continuing to retain ownership of the asset.
C)It refers to a distinctive sign, which identifies certain goods or services as those produced or provided by a specific person or enterprise.
D)It refers to the body of laws that grants authors, artists, and other creators protection for their literary and artistic creations, which are generally referred to as "works."
E)It refers to any confidential business information which provides an enterprise with a competitive edge.

Question 37

Patents cannot be granted within a single country.

Question 38

_____ refers to the exclusive rights granted to owners, under law, for their intangible assets.

A)Claim-rights
B)Terms of service
C)Intellectual property rights
D)Process innovation
E)Privileges

Question 39

Robert Solow showed mathematically that, in the long run, growth in gross national product per worker is due more to:

A)infrastructure development than to technological innovation.
B)capital investment than to R and D.
C)large investment banks than to technological institutes.
D)technological progress than to mere capital investment.
E)investment in labor and capital than mere technological progress.

Question 40

Which of the following statements is true for applied research?

A)It is a systematic study to gain knowledge or understanding necessary to determine the means by which a recognized and specific need may be met.
B)It advances the knowledge of science without an explicit, anticipated financially motivated outcome.
C)It refers to the work of scientists and others who pursue scientific investigations without commercial goals, focusing on unravelling the secrets of nature and finding new knowledge.
D)It does not develop its research findings.
E)It refers to establishing an infallible supply chain network by incorporating the best practices in channel distribution.

Question 41

_____ refers to a social structure made of nodes (which are generally individuals or organizations)that are connected by ties.

A)Social network
B)Social entrepreneurship
C)Social capital
D)Social mobility
E)Social engineering

Question 42

Which of the following statements holds true for user-led innovation?

A)It refers to the innovation by consumers, who are using (or want to use)the product in new ways beyond what the company originally intended.
B)It refers to companies setting up joint collaborative ventures with rival organizations to make improvements in the manufacturing process.
C)It refers to the implementation of a new or significantly improved process.
D)It refers to the innovation which is not patented by the organization and is offered for free for the common people to use.
E)It refers to companies setting up joint collaborative ventures with governmental organizations to make improvements in the manufacturing process.

Question 43

Threadless, a T-shirt manufacturing company, relies on the contribution of online community members in the design process.The community includes a group of volunteer designers who submit designs and vote on the designs submitted by others.In addition to free exposure, designers receive monetary incentives, including a $2,500 base award as well as a percentage of T-shirt sales.These incentives allow Threadless to encourage continual customer contribution.This serves as an example of:

A)licensing.
B)patent.
C)process innovation.
D)user-led innovation.
E)social network.

Question 44

Which of the following statements holds true for the concept, "bottom of the pyramid (BOP)" as defined by professors C.K.Prahalad and Stuart L.Hart?

A)It represents the four billion to five billion people who form a part of the lowest economic strata in the developed economies.
B)It represents the four billion to five billion people for whom the availability of electricity, telephones, credit, refrigeration, and other such amenities are guaranteed by their respective governments.
C)It represents the four billion to five billion people living on less than $2 per day, typically in emerging economies.
D)It represents the four billion to five billion people of the third world countries who have been subject to political persecution.
E)It represents the four billion to five billion people constituting the persecuted ethnic minority groups of Eastern Europe.

Question 45

Which of the following statements holds true for open innovation?

A)It refers to the generation of new business ideas through input from employees beyond a company's R&D department and even going outside the firm to enlist contributions from experts, customers, suppliers, and competitors.
B)It refers to companies setting up joint collaborative ventures with rival organizations to make improvements in the manufacturing process.
C)It refers to the implementation of a new or significantly improved process.
D)It refers to the innovation which is not patented by the organization and is offered for free for the common people to use.
E)It refers to companies setting up joint collaborative ventures with governmental organizations to make improvements in the manufacturing process.

Question 46

Young Chinese migrants to America are affected by tangible forms of social relations between the community, immigrant families, and the younger generations.Chinatown facilitates the accommodation of immigrant children in the expected directions.The knowledge and information that the children gain through the social network in Chinatown can be termed as:

A)social network.
B)social entrepreneurship.
C)social capital.
D)social mobility.
E)social engineering.

Question 47

Which of the following statements holds true for process innovation?

A)It refers to the generation of new business ideas through input from employees beyond a company's R&D department and even going outside the firm to enlist contributions from experts, customers, suppliers, and competitors.
B)It refers to companies setting up joint collaborative ventures with rival organizations to make improvements in the manufacturing process.
C)It refers to the implementation of a new or significantly improved process.
D)It refers to the innovation by consumers and end users, who are using (or want to use)the product in new ways beyond what the company originally intended.
E)It refers to companies setting up joint collaborative ventures with governmental organizations to improve the manufacturing process.

Question 48

The Special 301 Report is a(n):

A)authoritative work on the IPR protection and enforcement by the French liberal theorist, Benjamin Constant.
B)annual review of the global state of IPR protection and enforcement issued by theOffice of the United States Trade Representative.
C)journal published under the auspices of the United Nations by World Intellectual Property Organization.
D)report submitted by an inter-governmental expert committee on intellectual property rights constituted and controlled by the World Trade Organization.
E)report on the status of IPR protection and enforcement in the world by the European Commission.

Question 49

Which of the following statements holds true for copyright?

A)It refers to the exclusive right granted for an invention, which must be industrially applicable (useful)and new (novel), and exhibit a sufficient "inventive step" (be nonobvious).
B)It refers to a situation where the owner of an asset grants the right to use the asset to another, while continuing to retain ownership of the asset.
C)It refers to a distinctive sign, which identifies certain goods or services as those produced or provided by a specific person or enterprise.
D)It refers to the body of laws that grants authors, artists, and other creators protection for their literary and artistic creations, which are generally referred to as "works."
E)It refers to any confidential business information which provides an enterprise with a competitive edge.

Question 50

The logistics industry used to track the movement of goods manually.They have been able to improve its processes significantly by the introduction of RFID (Radio Frequency Identification)technology which is a cheap way to track goods.This is an example of:

A)collaboration.
B)patent.
C)process innovation.
D)open innovation.
E)user-led innovation.

Question 51

A significant amount of innovation yields no new products or services because:

A)companies consider research and development a waste of resources.
B)the chief purpose of innovation is to further scientific knowledge rather than create products or services.
C)of R&D failure.
D)the innovations are not related to a company's core processes.
E)of the dearth of new ideas.

Question 52

_____ is something where it has been shown that enough customers exist (or will exist in the future)for the product or technology covered by the patent.

A)Patented idea
B)Value proposition
C)Validated business model
D)R&D strategy
E)Pipeline

Question 53

Apple invented the cover integrated touch screens and the visual voicemail tool on the iPhone.Which of the following provides Apple legal protection and gives it the exclusive right to sell the invention to others?

A)Patent
B)License
C)Trade secret
D)Trademark
E)Copyright

Question 54

Which of the following statements is true for a business cluster?

A)It refers to the geographic concentration of business initiatives, suppliers, and associated institutions in a particular field.
B)It refers to the virtual concentration of manufacturers, dealers, and distributors dealing with the same product.
C)It refers to the categorization of countries similar in economic status and dealing with similar financial issues.
D)It refers to the regional concentration of customers who make the same social and cultural references while evaluating products.
E)It refers to a conglomeration of organizations who share cutting-edge technology and latest business practices for mutual benefit.

Question 55

Which of the following statements holds true for a trademark?

A)It refers to the exclusive right granted for an invention, which must be industrially applicable (useful)and new (novel), and exhibit a sufficient "inventive step" (be nonobvious).
B)It refers to a situation where the owner of an asset grants the right to use the asset to another, while continuing to retain ownership of the asset.
C)It refers to a distinctive sign, which identifies certain goods or services as those produced or provided by a specific person or enterprise.
D)It refers to the body of laws that grants authors, artists, and other creators protection for their literary and artistic creations, which are generally referred to as "works."
E)It refers to any confidential business information which provides an enterprise with a competitive edge.

Question 56

Which of the following statements holds true for a patent?

A)It refers to the exclusive right granted for an invention, which must be industrially applicable (useful)and new (novel), and exhibit a sufficient "inventive step" (be nonobvious).
B)It refers to a situation where the owner of an asset grants the right to use the asset to another while continuing to retain ownership of the asset.
C)It refers to a distinctive sign, which identifies certain goods or services as those produced or provided by a specific person or enterprise.
D)It refers to the body of laws that grants authors, artists, and other creators protection for their literary and artistic creations, which are generally referred to as "works."
E)It refers to any confidential business information which provides an enterprise with a competitive edge.

Question 57

Starbucks has introduced the concept of "Starbucks Idea" wherein customers can make suggestions with regard to the products and services offered by the company.It has online Starbucks Idea Partners who listen to the ideas, ask questions, and tell what the company does.This is an example of:

A)collaboration.
B)a patent.
C)process innovation.
D)open innovation.
E)a social network.

Question 58

Which of the following was the precursor to open innovation first identified by Eric von Hippel?

A)Process patent
B)User-led innovation
C)Lead-lag theory
D)End-user invention
E)Joint network

Question 59

_____ refers to resources such as ideas, information, money, and trust that can be assessed through a social network.

A)Social network
B)Social entrepreneurship
C)Social capital
D)Social mobility
E)Social engineering

Question 60

_____ refers to a series of linked activities (steps, tasks, or subprocesses)that produce an intended result.

A)Collaboratory
B)Patent
C)Trademark
D)Process
E)Copyright

Question 61

A blog post is created by a writer.It cannot be reproduced without the writer's consent.Which of the following protects the blog from being illegally reproduced without the consent of the writer?

A)A patent
B)A license
C)A trade secret
D)A trademark
E)A copyright

Question 62

What is the role of social software tools in making social networking more effective?

Question 63

An American organization manufactures a particular range of baseball bats.A Japanese baseball bat manufacturer wants to manufacture and sell this brand of baseball bats in Japan.Which of the following would allow him to do so?

A)A patent
B)A license
C)A trade secret
D)A trademark
E)A claim-right

Question 64

What are the most pressing challenges of developing R&D centers in different countries?

Question 65

KFC opposed patented invention or any other form of intellectual property when it came to protecting its fried chicken recipe.It chose the simplest way to protect its intellectual property by not revealing it.By doing this, KFC created a _____.

A)patent
B)license
C)trade secret
D)trademark
E)copyright

Question 66

Young Chinese migrants to America are affected by tangible forms of social relations between the community, immigrant families, and the younger generations.Chinatown facilitates the accommodation of immigrant children in the expected directions.The social structure at Chinatown can serve as an example of:

A)social network.
B)social entrepreneurship.
C)social capital.
D)social mobility.
E)social engineering.

Question 67

How are the newer models of organizing R&D different from the traditional ones?

Question 68

What is the Global Innovation Index?

Question 69

_____ is a document issued by the US government that contains a list of countries that are the worst offenders when it comes to IPR protection and enforcement.

A)Priority Watch list
B)The Intellectual Property Rights (IPR)report
C)Trades Review
D)Red Herring
E)U.S.News & World Report

Question 70

What is Intellectual property (IP)?

Question 71

The U.S.government's Office of the United States Trade Representative:

A)watches the trade relations with countries that have been granted the most favoured nation status.
B)monitors intellectual property rights around the world and fights IP theft.
C)observes the functioning of the international financial institutions such as the IMF and the World Bank.
D)determines the impact of HYPERLINK "http://en.wikipedia.org/wiki/Import" \o "Import" imports on U.S.industries and directs actions against certain unfair trade practices such as subsidies and HYPERLINK "http://en.wikipedia.org/wiki/Dumping_%28pricing_policy%29" \o "Dumping (pricing policy)" dumping.
E)promotes HYPERLINK "http://en.wikipedia.org/wiki/Exports" \o "Exports" exports of nonagricultural services and goods from the United States.

Question 72

What is the essential difference between an invention and an innovation?

Question 73

What are the advantages of an open innovation?

Question 74

Explain the concept of open innovation.

Question 75

_____ refers to an initiative of the World Resources Institute's Markets and Enterprise Program to provide a source for news, analysis, research, and discussion on development through enterprise and BOP ideas.

A)Advancing the Base of the Pyramid
B)Business with Four Billion
C)NextBillion.net
D)World Neighbors
E)Research for Humanity

Question 76

What is an innovation hub?

Question 77

The Nokia tune is a composition by the Spanish classical guitarist and composer HYPERLINK "http://en.wikipedia.org/wiki/Francisco_T%C3%A1rrega" \o "Francisco Tárrega" Francisco Tárrega and was written in 1902.The tune is a distinctive sign, which identifies phones as those produced by Nokia.This distinctive sign is referred to as the _____ of Nokia.

A)patent
B)license
C)trade secret
D)trademark
E)claim-right

Question 78

To get a patent, the company must reveal the details of the invention.Which of the following statements is a rationale for this action?

A)The invention can be released to the common man for public use.
B)Others can build on the invention and thus promote further innovation.
C)The company can prevent plagiarism by the rival companies.
D)The company can be granted related rights in case the invention is similar to any other invention already patented.
E)WTO can cancel the patent of any other invention that matches the invention that has been submitted for obtaining the patent.

Question 79

_____ is the global nongovernmental organization tasked with coordinating and marshalling efforts to harmonize intellectual property rights among countries and regions.

A)World Anti-Piracy Task Force
B)World Trade Representatives Forum
C)World Trade Organization
D)World Intellectual Property Organization
E)World Bank Intellectual Trade Division

Question 80

What role can governments play in promoting R&D?