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Chapter 10 Revision

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

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.

a)

national economies

b)

the individual firm

c)

society

d)

All of the above

2.

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

a)

society

b)

the individual firm

c)

All of the above

d)

national economies

3.

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.

a)

patents and licensing

b)

education and training

c)

procurement

d)

subsidies

4.

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

a)

The extent of competition both nationally and internationally

b)

R&D strategies and investment in R&D

c)

Collaboration with other firms

d)

Patterns of ownership

5.

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

a)

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

b)

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

c)

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

d)

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

6.

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.

a)

neither large nor small

b)

large

c)

small

d)

both large and small

7.

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.

a)

All of the above

b)

first-to-the-market

c)

free-rider

d)

follower

8.

Paradigm shift innovations

a)

change the nature of a product or process

b)

All of the above

c)

modify and improve on existing products and processes

d)

change the nature of markets and societies

9.

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.

a)

product

b)

technology

c)

process

d)

organization

10.

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

a)

structure

b)

behaviour of consumers

c)

All of the above

d)

costs

11.

The ___________ entrepreneur focuses on the product, which he or she has invented and/or developed, and possesses a specific skill originating from a trade or engineering background.

a)

All of the above

b)

opportunist

c)

craftsman

d)

organization builder

12.

The ___________ organization focuses on external experience and knowledge drawn from a variety of sources, with incremental strategies tending to be incremental, changing and creative.

a)

multinational

b)

mechanistic

c)

organic

d)

None of the above

13.

Which of the following is not a characteristic associated with the mechanistic organization?

a)

Very hierarchical structures with key knowledge located at the top

b)

Communication flows in all directions and the encouragement of teamworking and networking

c)

Highly specialized tasks, fragmentation and differentiation

d)

Tasks follow abstract rules

14.

Which of the following represents an advantage associated with innovation for national economies?

a)

Increased education

b)

Growth in economic output

c)

The ability to challenge competitors

d)

A better environment

15.

___________ innovations change the nature of a product or process.

a)

Incremental

b)

Radical

c)

Paradigm shift

d)

All of the above