Study Guide Management of Innovation

Topics: Innovation, Net present value, Discounted cash flow Pages: 9 (2475 words) Published: June 3, 2015
Chapter 1 and 2

1. Innovation and new technologies have led to longer product life cycles and lowered product obsolescence. FALSE

2. According to the concept of innovation funnel, the number of successful products launched will be greater than the number of raw ideas generated.  FALSE

3. A firm's organizational structure and control systems have no influence on the generation of innovative ideas. FALSE

4. Innovation often originates with those who create solutions for their own needs. TRUE

5. Investing in process innovation helps firms lower their costs. TRUE

6. Technological innovations decrease: 
A. 
the variety of goods consumers can purchase.

B. 
the need for differentiation among competitors.

C. 
the time required to design and produce new products.

D. 
the use of common components between different models of the same product.

7. Technology is in its purest essence _____. 
A. 
knowledge

B. 
trial and error

C. 
experimentation

D. 
guesswork

8. Unicorn Medicines, a pharmaceutical company based in the United States, has its research and development units spread across the globe. These research and development units have lately not been receiving adequate financial support. Which of the following is typically the cause for such a situation?  A. 

Technical innovation leads to lower market segmentation and slower product obsolescence.

B. 
Most innovative ideas do not become successful new products.

C. 
The product development cycle in the pharmaceutical industry is short.

D. 
The cost associated with pharmaceutical research and development is low.

9. The term _____ indicates that the product is novel to the individual who made it, but known to everyone else.  A. 
discovery

B. 
reinvention

C. 
creativity

D. 
innovation

10. Which of the following is characteristic of successful inventors?  A. 
They specialize solely in a single field rather than several fields simultaneously.

B. 
They are curious and more interested in solutions than problems.

C. 
They blindly accept the assumptions made in previous work in the field.

D. 
They seek global solutions rather than local solutions.

Chapter 3

11. The path a technology follows through time is termed its:  A. 
technology map.

B. 
technology trajectory.

C. 
technology cluster.

D. 
technology transfer.

12. The path a technology follows through time is termed its:  A. 
technology map.

B. 
technology trajectory.

C. 
technology cluster.

D. 
technology transfer.

13. Which of the following is true of technology diffusion?  A. 
S-curves in technology diffusion are obtained by plotting performance against time.

B. 
Information diffusion is slower than technology diffusion.

C. 
A drop in the prices of a new technology can accelerate technology diffusion.

D. 
Adoption is initially fast when a new technology is introduced to the market.

14. Which of the following is considered a radical innovation?  A. 
Introducing a range of cell phones with different colors and patterns on the cover.

B. 
Reducing the size and weight of a cell phone, to make it more compact and easier to carry.

C. 
Developing a cell phone that allows customers to scan the prices of the products in stores and make payments for their purchases.

D. 
Increasing the clarity of a cell phone's camera by replacing the three megapixel camera with a five megapixel camera.

15. Which of the following is true of component and architectural innovation?  A. 
Component innovation does not significantly affect the overall configuration of a system.

B. 
Architectural innovation is also called as modular innovation.

C. 
For a firm to initiate component innovation, knowledge about the whole system is necessary.

D. 
Component innovations have more far-reaching and complex influences on industry competitors and technology users than architectural innovations.

16....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Management Midterm Study Guide Essay
  • Essay about Project Management Study Guide
  • Study guide Essay
  • Management Study Guide Essay
  • Business Management Study Guide Essay
  • Management Study Guide Essay
  • Study Guide: Marketing Management Essay
  • Essay on Study Guide for Management Principles

Become a StudyMode Member

Sign Up - It's Free