Chapter 10 Revision

For ___________ the advantages associated with innovation include higher and sustainable profits, the ability to challenge competitors and to offer value-added to the customer in the form of improved quality, lower price and greater choice.

• national economies

• the individual firm

• society

• All of the above

Improved transport systems, health care and education represent advantages associated with innovation for ___________.

• society

• the individual firm

• All of the above

• national economies

In terms of state intervention in innovation, a proposed benefit of ___________ is that it encourages/ they encourage new developments by offering protection against others copying the invention.

• patents and licensing

• education and training

• procurement

• subsidies

In terms of the national systems of innovation approach, the role of the firm does not concern which of the following?

• The extent of competition both nationally and internationally

• R&D strategies and investment in R&D

• Collaboration with other firms

• Patterns of ownership

In terms of the relationship between organizational size and innovation, which of the following arguments for small firms is incorrect?

• They spend more on R&D as a proportion of total sales and employ proportionately more staff in R&D

• They feature more predominantly where risk is high, because they can spread risk more easily and are better placed to attract government support and bank loans

• They have a higher R&D intensity in terms of the relationship between R&D expenditure and sales

• They are more flexible and adaptive, less bureaucratic and closer to the customer

In terms of the relationship between organizational size and innovation, it is argued that ___________ firms feature more predominantly where risk is high, because of the needs to spread risk and to attract government support and bank loans.

• neither large nor small

• large

• small

• both large and small

In ___________ strategies research and development is viewed as a central part of operations, with a strong commitment to basic research, technical leadership and a willingness to takes risks with comparatively large investments.

• All of the above

• first-to-the-market

• free-rider

• follower

Paradigm shift innovations

• change the nature of a product or process

• All of the above

• modify and improve on existing products and processes

• change the nature of markets and societies

The creation of a new divisional structure in order to control international operations more effectively and to gain competitive advantage would represent an example of a ___________ innovation.

• product

• technology

• process

• organization

The impact of ___________ as a major inhibitor of effective innovation strategies is reinforced by the time lags between development and highly variable commercial exploitation.

• structure

• behaviour of consumers

• All of the above

• costs