Entrepreneurship - Chapter 3

Innovation is the successful exploitation of an old idea.
1. True
2. False
The first economist credited with clearly identifying innovation as an outcome of entrepreneurship was Joseph Schumpeter.
1. True
2. False
Which of the following would one think of as being the most widespread type of innovation?
1. Radical
2. Incremental
3. Transformational
4. Organisational
One of the following was not a type of innovation put forward by Schumpeter. Which one was this?
1. Opening a new market
2. Reorganising an industry in a new way
3. Creating a new venture
4. Introducing a new method of production
Which of the following is not generally seen as a fundamental reason for companies and countries to be increasingly innovative?
1. Trade liberalization has opened up increasing competition.
2. The threat of global warming has encouraged the production of ever more innovative products.
3. Scientific breakthroughs and new technology are changing the world faster than ever before.
4. The growth of global communications means that tastes and demand can spread across the world almost instantaneously.
‘National Systems of Innovation’ are organized and structured programmes devised by national governments and other state organizations.
1. True
2. False
Which of the following are NOT strategic priorities for European innovation?
1. Ensuring an effective IPR framework
2. Launching Joint Technology Initiatives
3. Helping innovation in regions
4. Supporting innovation in schools
‘End-user innovation’ describes where an innovation is particularly suited to those working in distribution or retail activities.
1. True
2. False
Which of the following is an advantage that small firms have over larger firms when it comes to innovation?
1. They have an advantage in capital intensive concentrated industries where substantial resources and converging technologies are present.
2. They have the advantage of being more flexible, informal, and responsive to change.
3. They can diversify their financial risks.
4. They can rely on economies of scale and scope to help diffuse innovations
It is always best in a competitive market context to innovate rather than imitate.
1. True
2. False

Entrepreneurship - Chapter 3

Quiz