These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Invention and innovation amount to the same thing.
In manufacturing industry, process innovation can be a greater source of competitive advantage than product innovation.
A firm that pursues a policy of basic innovation to create a breakthrough product is likely to be more successful than the firm that relies on incremental approaches to innovation.
Innovations can be classified as either demand pull or technology push.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Longitudinal studies show that an early emphasis on process innovation changes over time to a focus on product innovation.
Longitudinal studies show that early emphasis on product innovation changes over time to a focus on process innovation.
Longitudinal studies show that intensity and patterns of innovation activity change over time.
Longitudinal studies show that a firm based on the innovation of a successful product will continue to innovate.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Management innovation is innovation that is related to management and organization processes and practices.
Management innovation is innovation resulting from top down initiatives by the senior management group.
Management innovation is innovation that results from changing the senior management team.
Management innovation is the process of managing R&D departments.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Tacit knowledge is knowledge that is available in published material and on the Internet.
Tacit knowledge is knowledge that is developed and passed on within an organization.
Tacit knowledge is knowledge that is most closely linked to internal processes and operations.
Tacit knowledge is knowledge that is kept within the management team.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Discontinuous innovation refers to a series of unconnected innovations within the firm.
Discontinuous innovation refers to the innovation process in firms where product or process innovation occurs in bursts followed by periods of no innovation.
Discontinuous innovation refers to a radical innovation that changes significantly products, processes or organization practices.
Discontinuous innovation refers to an innovation process characterised by a series of false starts before the accepted innovation emerges.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The 2006 R&D scoreboard for global firms in the automobile and pharmaceutical industries demonstrates that a large R&D spend is a guarantee of increased profits.
The 2006 R&D scoreboard for global firms in the automobile and pharmaceutical industries demonstrates that a large R&D spend increases sales.
The 2006 R&D scoreboard for global firms in the automobile and pharmaceutical industries demonstrates that high spending on R&D is a function of competition and the state of the market.
The 2006 R&D scoreboard for global firms in the automobile and pharmaceutical industries demonstrates that the firms that spent most were the most efficient.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The UK R&D Scoreboard is a measure of R&D spending and does not attempt to link this to R&D effectiveness.
Internationally the automotive sector spends most on R&D.
An innovative design can always transform an ordinary product and increase sales.
Few firms engage in pure research.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
All owners of small firms can be classes as entrepreneurs.
Social background is important in developing entrepreneurs and also hindering their development.
Successful entrepreneurs can be identified by a cluster of personality traits.
There are different kinds of entrepreneurs, such as craftsmen, opportunists and organization builders. However, they all share the same basic skills and personality characteristics.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
McClelland found that entrepreneurs have a high need for achievement and a high need for power.
McClelland found that entrepreneurs have a high need for achievement and a low need for power.
McClelland found that entrepreneurs have a high need for achievement and a high need for power but a low need for affiliation.
McClelland found that entrepreneurs have a high need for achievement and a moderate need for power.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Levels of innovation are largely the product of cycles of economic growth and decline.
Firms that invest heavily in R&D are likely to be more profitable in the long term.
Patents can be used as accurate measures of innovation.
There is evidence to suggest that people will pay more for goods of superior technical quality.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Intellectual property refers to the tacit knowledge possessed by those working in the organization.
Intellectual property refers to legal devices such as patents and trademarks.
Intellectual property refers to ideas that are generated within the organization.
Intellectual property refers to any innovation developed within an organization.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
A patent enables a firm to keep the details of an invention to themselves for 20 years.
There is no correlation between patents granted and export performance in a given country.
A key feature of patents is the disclosure of information to stimulate further inventions.
Large US firms have been most successful in obtaining US patents in the last 20 years.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Whilst governments can stimulate innovation via funding and other policies, the control of projects is more difficult due to their lack of detailed knowledge.
In a free market economy the state has little involvement in the innovation.
The state makes a vital contribution to innovation by underwriting expensive projects in pharmaceuticals and aerospace.
Import controls are a proven way of stimulating innovation by home-based firms.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
National systems of innovation use state intervention as a key measure of differentiation between countries.
Contrasting political and economic systems can have a significant impact on the direction of innovation.
Successful innovation is often linked to a high expenditure in defence industries and space exploration.
In national systems of innovation, flows of knowledge are less important than the relationship of the various institutions and actors in the system.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The UK spends a lower proportion of its GDP on research than its main national competitors.
In the UK there are a higher proportion of high-tech firms than in the USA.
Because the Japanese file more patent applications than the British, it shows that they are more inventive.
Japanese and German economic growth is mainly attributable to their approaches to innovation.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Coordinated market economies like Germany and Japan tend to have less rigorous general education than in liberal market economies.
In coordinated market economies like Germany and Japan the funding is internally generated by firms and banks play a smaller role than in liberal market economies.
In liberal market economies the share value of firms is a good indicator of the level of innovative activity.
Costs and hence accountants play a greater role in liberal market economies than in coordinated market economies.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
There is a clear relationship between firm size and innovation.
Firms of less than 1000 employees account for almost half the innovations in the UK.
Small firms spend more on R&D as a proportion of total sales and they employ proportionally more staff in R&D functions than do larger firms.
Small firms are more flexible which makes them better innovators than large firms.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The size of the firm has more impact on innovation than the competitive rivalry within a market.
The relationship between innovation and the size of the firm changes over time.
Most fundamental process innovations take place in the early stages of a firm’s development.
Most fundamental product innovations take place once effective processes have been developed.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
In organic organizations knowledge is based throughout the organization and contribution to innovation is widespread.
In mechanistic organizations upward communication is discouraged.
Mechanistic organizations are unable to compete in modern markets.
Mechanistic organizations are not innovative because of their focus on experience and knowledge gained only within the organization.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The most innovative multinational firms have centralized their R&D function.
Basic research in global firms in such areas as pharmaceuticals favours localization to tap into the widest possible network of knowledge.
Global firms that have decentralized R&D have enjoyed an increase in innovative activity.
Global firms still have a tendency to locate the majority of their innovative activity in the home country.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Firms that are first to the market with an innovation are invariably more successful than those firms that pursue follower strategies.
First movers will inevitably lose customers as followers enter the market with cheaper products.
First movers can hold on to market share as they have had time to develop a brand.
First movers have greater advantages in travel and tourism than in fast moving consumer goods markets.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Follower strategies can rarely reap the financial benefits associated with first mover strategies.
The industry standards established by first movers can provide an infrastructure that followers can capitalize upon.
Consumers will always favour original branded goods over later copy products.
Those companies with follower strategies rarely have high investments in R&D.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The R&D strategy of a firm should be consistent across its product range.
The R&D strategy of a firm may vary for different product markets.
R&D investment should be proportional to likely future profit returns.
An R&D strategy is more important in a computer firm than in an insurance company.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
We can identify the characteristics of innovative firms and these characteristics can be used by managers to change the culture of a firm and develop innovative activity.
The key characteristic of an innovative firm is the proportion of graduates in the work force.
A UK government report identified a lack of vision and leadership as a major inhibitor to innovative activity.
Changing the culture of a firm and bringing in new staff are the two factors most likely to increase the level of innovative activity.