1- Innovation is important because it allows differentiation from competitors, manufacturing is easier and more flexible, the bar for competition is raised, and there is greater market segmentation.
2- Some advantages of technological innovation are: a wider range of products and services can be delivered to people, GDP has increased, people can communicate in every part of the world, the production of food has become more efficient, and it has yield medical treatments to improve medical conditions. The quality of life has improved. It has created new knowledge to solve practical problems.
Disadvantages include: harmful pollution to surrounding communities, erosion from fishing and agricultural technologies, elimination of natural habitats, genetic modification, and antibiotic resistant strains of bacteria.
3- Many innovations projects fail to generate an economic return because it takes a long time to research and develop the innovation. Once this product comes out on the market, it has already become obsolete because a new technology is already being researched as technology is constantly changing. Also, clear strategies are not developed by a firm and poor management of the innovation occurs.
Chpt 2 - Sources of Innovation
1(a) Advantages of individuals as innovators: deep understanding of their unmet needs and the incentive to find ways to fulfill them, users have no initial intention to profit from their inventions, new industries can be created. A disadvantage include lack of entrepreneurial traits.
1(b) Advantages of firms as innovators include alliances with stakeholders, absorptive capacity is built via the firm's in-house R&D. A disadvantage is when firms collaborate with complementors, the firms produce a range of goods and the line between the firm and the complementors becomes blurred.
1(c) Advantages of universities: staff is encouraged to engage in research that may lead to innovations. If an invention is commercialized, the...
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