Question 1

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.E) A) and B)
F) All of the above

Question 2

Where different technological solutions compete to establish a de facto technical standard,the winner is usually best technology.

Accepted Answer

A) True 
 B)False  False

Question 3

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 4

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 disagreeE) None of the above
F) All of the above

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A standard is a format or interface that allows interoperability.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The network externalities that support eBay's dominance of the market online auctions are primarily the result of user-based network effects.

Accepted Answer

A) True 
 B)False  True

Question 9

An organization's capacity for innovation depends primarily on the innate creativity of the people within the organization rather than the organization's internal environment.

Accepted Answer

A) True 
 B)False

Question 10

The main advantage of licensing as a means of exploiting an innovation is that the innovator can profit from the innovation without the need to invest in the complementary resources and capabilities required for commercialization

Accepted Answer

A) True 
 B)False

Question 11

The history of innovation supports Emerson's prediction that superior technology ("a better mousetrap")is usually translated into commercial success.

Accepted Answer

A) True 
 B)False

Question 12

Monsanto's NutraSweet artificial sweetener,Pfizer's Viagra,and Pilkington's float glass process are innovations that are examples of:

Accepted Answer

A)  Weak regimes of appropriability because the innovations could not be patented
B)  Strong regimes of appropriability because of the effectiveness of patent protection
C)  Strong regimes of appropriability because the innovators possessed strong complementary resources
D)  Network externalities leading to a winner-take-all marketE) A) and B)
F) A) and C)

Question 13

In video cassette recorders (VCRs) ,Matsushita's VHS format won against Sony's Betamax format because:

Accepted Answer

A)  VHS was technically superior to Betamax
B)  VHS VCRs were cheaper than Betamax VCRs
C)  Matsushita's licensing of its VHS format to other manufacturers of VCRs led to its gaining a lead in market share
D)  Sony entered the market too earlyE) B) and C)
F) A) and C)

Question 14

The best strategy for exploiting an innovation depends on two major factors: first,the strength of the firm's intellectual property in the innovation and,second,the resources and capabilities available to the firm.

Accepted Answer

A) True 
 B)False

Question 15

A common feature of the world's most valuable companies-Apple,Alphabet,Microsoft,Amazon,Tencent,Facebook,and Alibaba-in mid-2018 was:

Accepted Answer

A)  They owned a platform (or platforms) 
B)  They possessed visionary leaders
C)  They had focused on building competitive advantage in a clearly defined market
D)  They had used strategic alliances to build their competitive positionsE) A) and B)
F) All of the above

Question 16

The distinction between codifiable and tacit knowledge is relevant to a firm's ability to appropriate the returns to its innovation because:

Accepted Answer

A)  Technological progress involves advances in codifiable knowledge-hence it is more important
B)  Patents and copyrights must be articulated clearly-hence they embody only codifiable knowledge
C)  Tacit knowledge related primarily to traditional skills that are becoming increasingly irrelevant in today's digital economy
D)  If an innovation lacks legal protection,then,if it based on tacit knowledge it cannot be easily be imitatedE) A) and B)
F) None of the above

Question 17

In deciding when entering a new product market with an innovative product,an established company should be influenced mainly by :

Accepted Answer

A)  The principle that early-mover advantage is the key to success in new markets
B)  Reducing risk by waiting to see how technology and customer requirements will shape the emerging industry
C)  Identifying the optimal tradeoff between early-mover and follower advantages such that the firm's resources and capabilities can be most effective
D)  The potential to exploit network externalities in order to establish a dominant standardE) A) and B)
F) B) and C)

Question 18

Cooperation with lead users is a useful tool of innovation management because:

Accepted Answer

A)  Lead users set the trend for the mass market
B)  Due to their price insensitivity,lead users tend to be the most profitable customers
C)  Lead users provide both information feedback and revenues that can assist ongoing product development
D)  Because lead users are so discerning,they provide both discipline and incentivesE) A) and B)
F) All of the above

Question 19

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.E) B) and C)
F) A) and C) C

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

Correct AnswerverifiedShow Answer

Where different technological solutions compete to establish a de facto technical standard,the winner is usually best technology.

Correct AnswerverifiedFalse

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A standard is a format or interface that allows interoperability.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The network externalities that support eBay's dominance of the market online auctions are primarily the result of user-based network effects.

Correct AnswerverifiedTrue

An organization's capacity for innovation depends primarily on the innate creativity of the people within the organization rather than the organization's internal environment.

Correct AnswerverifiedShow Answer

The main advantage of licensing as a means of exploiting an innovation is that the innovator can profit from the innovation without the need to invest in the complementary resources and capabilities required for commercialization

Correct AnswerverifiedShow Answer

The history of innovation supports Emerson's prediction that superior technology ("a better mousetrap")is usually translated into commercial success.

Correct AnswerverifiedShow Answer

Monsanto's NutraSweet artificial sweetener,Pfizer's Viagra,and Pilkington's float glass process are innovations that are examples of:

Correct AnswerverifiedShow Answer

In video cassette recorders (VCRs) ,Matsushita's VHS format won against Sony's Betamax format because:

Correct AnswerverifiedShow Answer

The best strategy for exploiting an innovation depends on two major factors: first,the strength of the firm's intellectual property in the innovation and,second,the resources and capabilities available to the firm.

Correct AnswerverifiedShow Answer

A common feature of the world's most valuable companies-Apple,Alphabet,Microsoft,Amazon,Tencent,Facebook,and Alibaba-in mid-2018 was:

Correct AnswerverifiedShow Answer

The distinction between codifiable and tacit knowledge is relevant to a firm's ability to appropriate the returns to its innovation because:

Correct AnswerverifiedShow Answer

In deciding when entering a new product market with an innovative product,an established company should be influenced mainly by :

Correct AnswerverifiedShow Answer

Cooperation with lead users is a useful tool of innovation management because:

Correct AnswerverifiedShow Answer

The principal difference between invention and innovation is:

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

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False

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True

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C

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