Research and development

Research and development is unlikely to include which of the following

• Market research

• Position mapping

• Prototypes

• Test marketing

The most likely purpose of spending huge amounts of money on research and development is to

• Diversify the activities of a business

• Gain rights to patents, trademarks or copyrights

• Increase the earning potential of the business in the future

• Remove competition

R&D expenditure is often used as a barrier to entry by large businesses that dominate the market. What are these firms known as?

• Market leaders

• Process innovators

• Sunrise businesses

• Sunset businesses

Innovation is best described as

• Market-orientated processes

• New products that are launched on the market

• The commercial development and use of an idea or process that appeals to consumers

• The development of new ideas and working practises

Benefits of innovation do not include

• Brand switching

• Growth opportunities

• Productivity gains

• Reduced product failure rate

Which of the following is not a constraint of innovation?

• Budgetary constraints

• Competitiveness

• High failure rate

• High R&D costs

Which type of innovation refers to changes in the way that production takes place, i.e. how production takes place?

• Paradigm innovation

• Positioning innovation

• Process innovation

• Product innovation

Changing the context of a product is known as

• Paradigm innovation

• Positioning innovation

• Process innovation

• Product innovation

What is the name given to the category of incremental innovation that adjusts or develops something that already exists?

• Adaptive creativity

• Innovative creativity

• Paradigm innovation

• Research and development

In which financial account do companies record their intellectual property rights?

• Balance sheet

• Cash flow forecast

• Income statement

• Profit and loss account