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Test Bank For Strategic Management of Technological Innovation 5th Edition Download PDF Full Chapter
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Test Bank for Strategic Management of
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Chapter 02
Sources of Innovation
1. If an individual knows a field too well, it can stifle his ability to come up with solutions that require an
alternative perspective.
True False
2. An organization's overall creativity level is a simple aggregate of the creativity of the individuals it
employs.
True False
True False
4. Innovation often originates with those who create solutions for their own needs.
True False
5. The terms research and development represent different kinds of investment in innovation-related
activities.
True False
6. The science-push approach to research and development argued that innovation was driven by the
perceived demand of potential users.
True False
7. Firms often form alliances with competitors to jointly work on an innovation project or to exchange
information in pursuit of innovation.
True False
8. Typically, the intellectual property policies of a university embrace both patentable and unpatentable
innovations.
True False
9. Incubators are regional districts, typically set up by government, to foster R&D collaboration between
government, universities, and private firms.
True False
10. The decline in the government share of spending on R&D is largely due to the rapid increase in
industry R&D funding rather than a real decline in the absolute amount spent by the government.
True False
True False
True False
13. Proximity and interaction can directly influence firms' ability and willingness to exchange knowledge.
True False
14. Knowledge that is explicit requires more frequent and close interaction to be meaningfully exchanged
than knowledge that is tacit.
True False
15. The degree to which innovative activities are geographically clustered is independent of the national
differences in the way technology development is funded or protected.
True False
16. Erison Group, an advertising company, wants to hire someone as its creative head. Who among the
following would be best suited for this position?
A. An individual who completely adheres to the existing logic and paradigms and has extensive
knowledge of the field
B. An individual who has low tolerance for ambiguity and avoids taking risks
C. An individual who has a moderate degree of knowledge of the field but is intrinsically motivated
D. An individual who prefers to look at problems in conventional ways
A. They specialize solely in a single field rather than several fields simultaneously.
B. They are curious and more interested in solutions than in problems.
C. They blindly accept the assumptions made in previous works in their field.
D. They seek global solutions rather than local solutions.
18. Which of the following is an example of user innovation?
A. Samuel has invented a detachable bicycle in order to make profits by selling it to a reputed bicycle
manufacturing firm.
B. Sandra, an engineer, has developed a device that helps track the location of her teenage
daughter's car.
C. Jessica, an ace designer for a clothing brand, has been asked to work on a dyeing technique that
changes fabric color according to the room temperature.
D. Ivan, a scientist at a reputed pharmaceutical company, has developed an anti-inflammatory drug
for the company to commercialize.
19. Which of the following is the correct sequence of steps for the science-push approach to research
and development?
A. Customers express an unmet need, R&D develops the product to meet that need, the product is
manufactured, and finally the marketing team promotes the product.
B. Scientific discovery leads to an invention, the engineering team designs the product, it is
manufactured, and finally the marketing team promotes it.
C. Marketing discovers a need, R&D comes up with the product concept that is refined by
engineering, the manufacturing team produces it, and finally the product is sold.
D. Manufacturing sees a way to improve a product, the engineering team redesigns it, and finally the
marketing team creates awareness about the improved product.
20. Breaking Ventures Inc. realized that most parents are worried about their teenage children going out
on their own. Based on this information, the company developed a device that could be fixed into
teenagers' cell phones, and it helped parents keep track of their children's location. This approach to
research and development is referred to as .
A. demand-pull
B. supply-push
C. science-push
D. research-pull
21. The demand-pull approach to research and development refers to research and development that:
A. focuses on developing products that are expected to increase demand in a particular market
segment.
B. begins by examining the outcomes of the firm's basic research and the potential commercial
applications that may be constructed from those outcomes.
C. focuses on developing products that are expected to decrease the demand for their substitute
products.
D. originates as a response to the specific problems or suggestions of customers.
22. Organizations that manufacture products such as light bulbs for lamps or DVDs for DVD players are
examples of .
A. moderators
B. lead users
C. complementors
D. incubators
23. is the ability of an organization to recognize, assimilate, and utilize new knowledge.
A. Cognitive dissonance
B. Absorptive capacity
C. Organizational obsolescence
D. Built-in obsolescence
24. The president of Mountain Home University has been asked by the board of trustees to set up a
separate unit to facilitate the commercialization of technology developed by the research students at
the university. Such a unit is typically called a .
25. Which of the following statements is true about the Bayh-Dole Act of 1980?
26. Regional districts, typically set up by government, to foster R&D collaboration between government,
universities, and private firms are called .
A. technological trajectories
B. free trade areas
C. complementors
D. science parks
27. In 2001, Shanghai's municipal government set aside 13 square kilometers of land near the Huangpu
River for university laboratories and start-up firms in microelectronics, digital technology, and life
sciences. The project aimed to foster research in microelectronics, the development of a
technologically advanced labor pool, and the creation of new industries in Shanghai. This project
would be best termed a .
A. complementor
B. strategic unit
C. science park
D. free trade area
28. Institutions designed to nurture the development of new businesses that might otherwise lack access
to adequate funding or advices are called .
A. complementors
B. research collaboration offices
C. incubators
D. technology clusters
29. Which of the following is true of interfirm collaborative research and development networks?
A. The proximity of many competitors serving a local market leads to competition that increases their
pricing power in their relationships with both buyers and suppliers.
B. Close proximity of firms eliminates the likelihood of a firm's competitors gaining access to the firm's
proprietary knowledge.
C. Clustering invariably leads to lower concentration of pollution and inordinately low housing costs.
D. Proximate firms have an advantage in sharing information that can lead to greater innovation
productivity.
32. The benefits firms reap by locating in close geographical proximity to each other are known
collectively as .
A. agglomeration economies
B. incubator economies
C. virtual economies
D. shadow economies
33. are individuals or organizations that transfer information from one domain to another in which it
can be usefully applied.
A. Knowledge brokers
B. Incubation workers
C. Complementors
D. Category captains
34. is a positive externality from R&D resulting from the spread of knowledge across organizational
or regional boundaries.
A. Technological discombobulation
B. Technological determinism
C. Technological spillover
D. Technological dissonance
35. A variety of rice created by Biocrop Inc. through recombinant DNA technology was found to be rich in
both carbohydrates and proteins. After the success of this rice variety, recombinant DNA technology
was implemented by less-developed countries to increase the nutrient levels of fruits, pulses, and
greens in order to feed their malnourished children. This is an example of .
A. technological dissonance
B. technological spillover
C. technological retardation
D. technological determinism
Essay Questions
36. What are the most important intellectual abilities for creative thinking? What is the impact of
knowledge on creativity?
40. Explain the concept of technology spillovers. What are the factors affecting the likelihood of
technological spillovers?
Chapter 02 Sources of Innovation Answer Key
1. If an individual knows a field too well, it can stifle his ability to come up with solutions that require
(p. 20) an alternative perspective.
TRUE
Difficulty: 1 Easy
2. An organization's overall creativity level is a simple aggregate of the creativity of the individuals it
(p. 20) employs.
FALSE
Difficulty: 1 Easy
TRUE
Difficulty: 1 Easy
4. Innovation often originates with those who create solutions for their own needs.
(p. 24)
TRUE
Difficulty: 1 Easy
5. The terms research and development represent different kinds of investment in innovation-related
(p. 26) activities.
TRUE
Difficulty: 1 Easy
6. The science-push approach to research and development argued that innovation was driven by
(p. 27) the perceived demand of potential users.
FALSE
Difficulty: 1 Easy
7. Firms often form alliances with competitors to jointly work on an innovation project or to exchange
(p. 27) information in pursuit of innovation.
TRUE
Difficulty: 1 Easy
8. Typically, the intellectual property policies of a university embrace both patentable and
(p. 29) unpatentable innovations.
TRUE
Difficulty: 1 Easy
9. Incubators are regional districts, typically set up by government, to foster R&D collaboration
(p. 29) between government, universities, and private firms.
FALSE
Difficulty: 1 Easy
10. The decline in the government share of spending on R&D is largely due to the rapid increase in
(p. 29) industry R&D funding rather than a real decline in the absolute amount spent by the government.
TRUE
Difficulty: 1 Easy
FALSE
Difficulty: 1 Easy
FALSE
Difficulty: 1 Easy
13. Proximity and interaction can directly influence firms' ability and willingness to exchange
(p. 35) knowledge.
TRUE
Difficulty: 1 Easy
14. Knowledge that is explicit requires more frequent and close interaction to be meaningfully
(p. 35) exchanged than knowledge that is tacit.
FALSE
Difficulty: 1 Easy
15. The degree to which innovative activities are geographically clustered is independent of the
(p. 36) national differences in the way technology development is funded or protected.
FALSE
Difficulty: 1 Easy
Multiple Choice Questions
16. Erison Group, an advertising company, wants to hire someone as its creative head. Who among
(p. 20) the following would be best suited for this position?
A. An individual who completely adheres to the existing logic and paradigms and has extensive
knowledge of the field
B. An individual who has low tolerance for ambiguity and avoids taking risks
C. An individual who has a moderate degree of knowledge of the field but is intrinsically motivated
D. An individual who prefers to look at problems in conventional ways
Difficulty: 3 Hard
A. They specialize solely in a single field rather than several fields simultaneously.
B. They are curious and more interested in solutions than in problems.
C. They blindly accept the assumptions made in previous works in their field.
D. They seek global solutions rather than local solutions.
Difficulty: 2 Medium
18. Which of the following is an example of user innovation?
(p. 26)
A. Samuel has invented a detachable bicycle in order to make profits by selling it to a reputed
bicycle manufacturing firm.
B. Sandra, an engineer, has developed a device that helps track the location of her teenage
daughter's car.
C. Jessica, an ace designer for a clothing brand, has been asked to work on a dyeing technique
that changes fabric color according to the room temperature.
D. Ivan, a scientist at a reputed pharmaceutical company, has developed an anti-inflammatory
drug for the company to commercialize.
Difficulty: 3 Hard
19. Which of the following is the correct sequence of steps for the science-push approach to research
(p. 27) and development?
A. Customers express an unmet need, R&D develops the product to meet that need, the product
is manufactured, and finally the marketing team promotes the product.
B. Scientific discovery leads to an invention, the engineering team designs the product, it is
manufactured, and finally the marketing team promotes it.
C. Marketing discovers a need, R&D comes up with the product concept that is refined by
engineering, the manufacturing team produces it, and finally the product is sold.
D. Manufacturing sees a way to improve a product, the engineering team redesigns it, and finally
the marketing team creates awareness about the improved product.
Difficulty: 2 Medium
20. Breaking Ventures Inc. realized that most parents are worried about their teenage children going
(p. 27) out on their own. Based on this information, the company developed a device that could be fixed
into teenagers' cell phones, and it helped parents keep track of their children's location. This
approach to research and development is referred to as .
A. demand-pull
B. supply-push
C. science-push
D. research-pull
Difficulty: 3 Hard
21. The demand-pull approach to research and development refers to research and development
(p. 27) that:
A. focuses on developing products that are expected to increase demand in a particular market
segment.
B. begins by examining the outcomes of the firm's basic research and the potential commercial
applications that may be constructed from those outcomes.
C. focuses on developing products that are expected to decrease the demand for their substitute
products.
D. originates as a response to the specific problems or suggestions of customers.
Difficulty: 2 Medium
22. Organizations that manufacture products such as light bulbs for lamps or DVDs for DVD players
(p. 27) are examples of .
A. moderators
B. lead users
C. complementors
D. incubators
Difficulty: 1 Easy
23. is the ability of an organization to recognize, assimilate, and utilize new knowledge.
(p. 28)
A. Cognitive dissonance
B. Absorptive capacity
C. Organizational obsolescence
D. Built-in obsolescence
Difficulty: 1 Easy
24. The president of Mountain Home University has been asked by the board of trustees to set up a
(p. 29) separate unit to facilitate the commercialization of technology developed by the research students
at the university. Such a unit is typically called a .
Difficulty: 2 Medium
25. Which of the following statements is true about the Bayh-Dole Act of 1980?
(p. 29)
Difficulty: 2 Medium
26. Regional districts, typically set up by government, to foster R&D collaboration between
(p. 29) government, universities, and private firms are called _ .
A. technological trajectories
B. free trade areas
C. complementors
D. science parks
Difficulty: 1 Easy
27. In 2001, Shanghai's municipal government set aside 13 square kilometers of land near the
(p. 29) Huangpu River for university laboratories and start-up firms in microelectronics, digital technology,
and life sciences. The project aimed to foster research in microelectronics, the development of a
technologically advanced labor pool, and the creation of new industries in Shanghai. This project
would be best termed a .
A. complementor
B. strategic unit
C. science park
D. free trade area
Difficulty: 3 Hard
28. Institutions designed to nurture the development of new businesses that might otherwise lack
(p. 29) access to adequate funding or advices are called .
A. complementors
B. research collaboration offices
C. incubators
D. technology clusters
Difficulty: 1 Easy
29. Which of the following is true of interfirm collaborative research and development networks?
(p. 32)
Difficulty: 2 Medium
30. are regional groups of firms that have a connection to a common technology and may
(p. 34) engage in buyer, supplier, and complementor relationships, as well as research collaboration.
Difficulty: 1 Easy
A. The proximity of many competitors serving a local market leads to competition that increases
their pricing power in their relationships with both buyers and suppliers.
B. Close proximity of firms eliminates the likelihood of a firm's competitors gaining access to the
firm's proprietary knowledge.
C. Clustering invariably leads to lower concentration of pollution and inordinately low housing
costs.
D. Proximate firms have an advantage in sharing information that can lead to greater innovation
productivity.
Difficulty: 2 Medium
32. The benefits firms reap by locating in close geographical proximity to each other are known
(p. 35) collectively as .
A. agglomeration economies
B. incubator economies
C. virtual economies
D. shadow economies
Difficulty: 1 Easy
33. are individuals or organizations that transfer information from one domain to another in
(p. 36) which it can be usefully applied.
A. Knowledge brokers
B. Incubation workers
C. Complementors
D. Category captains
Difficulty: 1 Easy
34. is a positive externality from R&D resulting from the spread of knowledge across
(p. 37) organizational or regional boundaries.
A. Technological discombobulation
B. Technological determinism
C. Technological spillover
D. Technological dissonance
Difficulty: 1 Easy
35. A variety of rice created by Biocrop Inc. through recombinant DNA technology was found to be
(p. 37) rich in both carbohydrates and proteins. After the success of this rice variety, recombinant DNA
technology was implemented by less-developed countries to increase the nutrient levels of fruits,
pulses, and greens in order to feed their malnourished children. This is an example of .
A. technological dissonance
B. technological spillover
C. technological retardation
D. technological determinism
Difficulty: 3 Hard
Essay Questions
36. What are the most important intellectual abilities for creative thinking? What is the impact of
(p. 20) knowledge on creativity?
An individual's creative ability is a function of his or her intellectual abilities, knowledge, style of
thinking, personality, motivation, and environment. The most important intellectual abilities for
creative thinking include the ability to look at problems in unconventional ways, the ability to
analyze which ideas are worth pursuing and which are not, and the ability to articulate those ideas
to others and convince others that the ideas are worthwhile. The impact of knowledge on creativity
is somewhat double-edged. If an individual has too little knowledge of a field, he or she is unlikely
to understand it well enough to contribute meaningfully to it. On the other hand, if an individual
knows a field too well, that person can become trapped in the existing logic and paradigms,
preventing him or her from coming up with solutions that require an alternative perspective. Thus,
an individual with only a moderate degree of knowledge of a field might be able to produce more
creative solutions than an individual with extensive knowledge of the field.
Difficulty: 2 Medium
37. Explain the terms basic research and applied research.
(p. 26)
Basic research is effort directed at increasing understanding of a topic or field without a specific
immediate commercial application in mind. This research advances scientific knowledge, which
may (or may not) turn out to have long-run commercial implications. Applied research is directed
at increasing understanding of a topic to meet a specific need. In industry, this research typically
has specific commercial objectives.
Difficulty: 2 Medium
An incubator is an institution designed to nurture the development of new businesses that might
otherwise lack access to funding or advice. It allows companies to share costs and resources until
they can stand on their own. Incubators help overcome the market failure that can result when a
new technology has the potential for important societal benefits, but its potential for direct returns
is highly uncertain.
Difficulty: 2 Medium
There are some downsides to geographical clustering. First, the proximity of many competitors
serving a local market can lead to competition that reduces their pricing power in their
relationships with both buyers and suppliers. Second, close proximity of firms may increase the
likelihood of a firm's competitors gaining access to the firm's proprietary knowledge. Third,
clustering can potentially lead to traffic congestion, inordinately high housing costs, and higher
concentrations of pollution.
Difficulty: 2 Medium
40. Explain the concept of technology spillovers. What are the factors affecting the likelihood of
(p. 37) technological spillovers?
Technological spillovers are a positive externality from R&D resulting from the spread of knowledge
across organizational or regional boundaries. Technology spillovers are a significant influence on
innovative activity. Whether R&D benefits will spill over is partially a function of the strength of
protection mechanisms such as patents, copyrights, and trade secrets. Since the strength of
protection mechanisms varies significantly across industries and countries, the likelihood of
spillovers varies also. The likelihood of spillovers is also a function of the nature of the underlying
knowledge base and the mobility of the labor pool.
Difficulty: 2 Medium
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