Test Bank For Managing Innovation Integrating Technological, Market and Organizational Change, 8th E

Test Bank For Managing Innovation Integrating Technological, Market and Organizational Change, 8th EditionJoe Tidd, John R. Bessant Chapter 1-15 Test Bank Answers marked with a * Chapter 1.

1) Which of these would not normally be considered an incremental innovation?

A) B) C) D)

Quantum computing * Low sugar soft drinks Seat reservations linked directly to booking rail tickets Home delivery fast food

2). Innovation can only happen in large firms because they have the resources to fund innovation specialists.

True False *

3). Which of the following are factors often associated with successful innovating organizations?

(Several choices may be correct.)

A) B) C) D) E) F)

Large size Strong and charismatic leadership Supportive organizational climate with structures and incentives for innovation * Explicit mechanisms for enabling agile implementation of innovation ideas * Large market share Age of the firm—the older the better

4). Which of the following would you class as a radical innovation? (Several choices may be correct.)

A) B) C) D) E)

Erasable children's marker pens The integrated circuit* The microwave oven* Digital photography* Catalytic converters on cars

5). Which of the following is NOT a source of strategic advantage through innovation?

A) Complexity—offering something that others find it difficult to master B) Legal protection of intellectual property—offering something that others cannot do unless they pay a license or other fee C) Proximity to large markets* D) Novelty in product or service offering—offering something no one else can

6). Blockchain-enabled contracts for supply chain tracking is an example of radical innovation.

True?* False?

7). Innovation can take many forms. Running a website which enables people to share and rent out their accommodation is an example of which kind of innovation?

A) Product (or service) innovation—changes in what is offered to the world* B) Process innovation—changes in the way offerings are created and delivered C) Position innovation—changes in the context in which innovations are launched

8). Which of the following is NOT an example of product innovation?

A) B) C) D)

A new detergent A new off-road cycle design A foldable screen smartphone Computer-control of railway signalling*

9). Innovation success is directly linked to the number of patents which an organization holds True?

False?*

Chapter 2: Digital is different?

1). Digital innovation is an approach to software engineering True?

False?*

2). Which of these is NOT an example of digital innovation?

A. B. C. D.

Apps for food delivery Online travel booking Custom-made leather gloves* Online entertainment streaming platforms

3). Digital innovation is not applicable in service sectors since it depends on robotics.

True?

False?*

4). Platform innovation is?

A. B. C. D.

Railway based service innovation Only confined to online retailing Something which requires a large sized established organization in which to operate An online space in which ideas can be exchanged, products and services offered and delivered and a meeting point for different sides of a market*

5). Knowledge management is the role of librarians and refers to coding and classifying information True?

False?*

6). ‘Crowdsourcing’ of ideas can be used to support innovation. Which of these is NOT an option?

A. Online challenges, inviting a wide range of ideas as inputs to specific innovation themes like sustainability B. Shared ideas and solutions to problems posed online C. Online user groups with shared community problem solving D. Ticketing payment from people in a queue at a performance venue*

7). Collaborative innovation platforms can only used to engage and crowdsource ideas from employees within private sector organizations.

True?

False?*

8). Which of these is NOT a digital platform business?

A. B. C. D.

Amazon Wagamama restaurants* Lego Microsoft

9). Which of these is not an example of digital innovation?

A. B. C. D.

Programmable logic control on a machine tool An appointment booking app for a hospital A new flavour snack health food* Online car taxation

10). Digital innovation is primarily concerned with using online sales order processing techniques to allocate goods and services more efficiently True?

False? *

Chapter 3: Managing innovation as a process

1). Which of the following would NOT qualify as a discontinuous innovation?

A. Voice over Internet protocol (VOIP) telephony B. Gene therapies for cancer treatment C. Flat bed sleeping in business class airline cabins*

D. The Internet

2). Innovation process models are only necessary in firms larger than 50 employees because of the need to allocate people to roles in projects True?

False?*

3). Servitization refers to improved customer service by manufacturing organizations True?

False?*

4). Which of these innovations would not qualify as a dominant design?

A. B. C. D.

The Universal Product Code (bar code) TCP/IP internet protocols The QWERTYUIOP layout for English language keyboards 7 colour laser printing*

5). Innovation process models are not applicable in the social innovation space because of ethical concerns True?

False?*

6). The development of green light emitting diodes was a discontinuous innovation in the lighting industry.

True?

False?*

7). Routines are about reducing the need for innovation by standardising products, services and processes True?

False?*

Chapter 4: Developing an innovation strategy

1. Four factors have a major influence on the ability of a firm to develop and create value through innovation. Which of the following is not one of these factors? a) Its ability to identify and exploit external sources of innovation, especially international networks. *b) Its ability to invest in basic science and technology. c) Its power and market position within the international value chain, which in part defines the innovation-based opportunities and threats that it faces. d) The national system of innovation in which the firm is embedded, and which in part defines its range of choices in dealing with opportunities and threats.

2. In his popular book, The World is Flat: The globalized world in the 21st century (Penguin, 2006), Thomas Friedman argues that developments in technology and trade, in particular information and communications technologies (ICTs), are spreading the benefits of globalization to the merging economies, promoting their development and growth. Which of the following is not true? *a) Technology and innovation are evenly distributed globally. b) Technology and innovation are not easily transferred across regions or firms. c) Different national contexts influence the ability of firms to absorb such technology and innovation. d) The position of firms in international value chains can constrain their ability to exploit innovation.

3. Deciding where to locate and perform R&D depends on a number of factors. Which of the following is not a significant influence? a) R&D supporting overseas production should be located close to that of overseas production. b) R&D supporting existing businesses (i.e. products, processes, divisions) should be located in established divisions. *c) R&D supporting global products and services should be located overseas. d) R&D supporting new businesses should initially be located in central laboratories, then transferred to divisions for exploitation.

4. Which of the following is not one of the main factors influencing the decision where to locate R&D globally?

a) The importance of external sources of technical and market knowledge, e.g. sources of technology, suppliers, and customers. *b) The quality of the science and technology base. c) The importance and costs of internal transactions, e.g. between engineering and production. d) The cost and disruption of relocating key personnel to the chosen site.

5. Firms have many reasons for monitoring and learning from the development of technological, production and organizational competencies of systems of innovation in other countries, and especially from those that are growing and strong. Which of the following is not a significant reason? *a) Understanding and imitating foreign systems of innovation. b) Firms can benefit more specifically from the technology generated in foreign systems of innovation. c) Potential sources of improvement in the corporate management of innovation. d) Identify and plan for firms with a potential capacity to compete through innovation.

6. Which of the following is the least common method used by firms to learn about competitors’ innovations? a) Licensing. b) Reverse engineering. *c) Patent analysis. d) Publications.

7. The national system of innovation in which a firm is embedded matters greatly, since it strongly influences both the direction and the vigour of its own innovative activities. This includes national market incentives and pressures to which firms have to respond. Which of the following is not a significant incentive? a) Local production input prices, where international differences can help generate very different pressures for innovation. b) Local (private and public) investment activities, which create innovative opportunities for local suppliers. *c) Local skills and knowledge. d) Local natural resources, which create opportunities for innovation in both upstream extraction and downstream processing.

8. Firms’ innovative behaviours are strongly influenced by the competencies of their managers and the ways in which their performance is judged and rewarded (and punished). Methods of judgement and reward vary considerably amongst countries, according to their national systems of corporate governance: in other words, the systems for exercising and changing corporate ownership and control. Which of the following is not generally true?

a) In the Anglo-Saxon system corporate ownership (shareholders) is separated from corporate control (managers). *b) In the Anglo-Saxon system investors are slow to deal with poor investment choices. c)In the Nippon–Rhineland system a higher priority is given to investment than to returns to shareholders. d) In the Nippon–Rhineland system banks, suppliers and customers are more heavily locked into the firms in which they invest.

9. Technological leadership in firms does not necessarily translate itself into economic benefits. The capacity of the firm to appropriate the benefits of its investment in technology depends on its position. Which of the following is not relevant? *a) Innovation ‘leadership’—where firms aim at being first to market, based on technological leadership. b) Complementary assets or capabilities in marketing and distribution. c) Capacity to defend its advantage against imitators, for example, through standards or intellectual property. d) The learning curve in production generates both lower costs, and a particular and powerful form of accumulated and largely tacit knowledge.

10. Firms in emerging economies may pursue different routes to upgrading through innovation. Which of the following is not a common pathway? a) Capability upgrading – improving the range of functions undertaken, or changing the mix of functions, for example, production versus development or marketing. b) Process upgrading – incremental process improvements to adapt to local inputs, reduce costs or to improve quality. *c) Competitiveness upgrading - adopting best-practice methods from developed economies. d) Inter-sectoral upgrading - moving to different sectors, for example, to those with higher value-added.

11. Prahalad and Hamel argue that the capacity to open up new product markets requires distinctive core competencies, coupled with methods of corporate organization and evaluation that explicitly recognize the importance of these competencies. Which of the following is not true of core competencies? a) Contribute to more than one core product, and to more than one business unit. *b) Suggests that large and multidivisional firms should be viewed as a collection of strategic business units. c) Require focus: companies are likely to lead in more than five or six core competencies. d) Are supported by organizational competencies such communication, involvement, and a commitment to working across organisational boundaries.

12. David Teece and Gary Pisano integrate the various dimensions of innovation strategy into what they call the ‘dynamic capabilities’ approach. This emphasizes the need to: *a) Manage strategically to adapt and re-configure capabilities. b) Make significant investments in emerging technological trajectories. c) Adopt a strategic position as market leader. d) Strategically anticpate future technologies and markets.

13. The notions of core competence and dynamic capabilities are useful as they emphasize the importance of developing firm-level resources. However, there are a number of limitations to these approaches. Which of the following is not a significant limitation of the concepts? a) Industries face differing potentials for technology-based diversification. b) Recommendations that firms should concentrate resources on a few distinctive world-beating technological competencies are misleading. *c) Emphasizes the difficulty of capturing and transferring knowledge due to its tacit nature and context-specificity. d) More general enabling competencies for the co-ordination of changes in supply, production and distribution systems are necessary.

14. A strategic goal is to get the right balance between exploitation of existing competencies and the exploitation and development of new competencies. Which of the following is not a critical issue in this respect? a) The breadth and limits of management cognition which influence decision-making. b) The skills and experience of employees and other human capital. c) The internal and external relationships that influence access to information and knowledge. *d) The vision, control and power of senior managers.

15. There is no widely accepted definition or method of measurement of competencies.

Which of the following statements is not true? a) Functional measures might include capabilities in design, development or production. b) Need to identify the range of disciplines or fields that contribute to a technology. c) Need to be based on specific strategic technological targets. d) Need to identify the new competencies that must be developed.

Chapter 5: Building the innovative organization Correct answers are indicated with a *

1. At each of the different stages of developing a new venture there are different significant challenges to overcome in order to make a successful transition to the next stage, what the researchers call "critical junctures". Which of the following is not normally such a critical transition? a) Entrepreneurial commitment - persistence that bind the venture champion to the emerging business venture. b) Venture credibility - of the venture team, key customers and other social capital and relationships. c) Resource availability - access to the necessary financial resources. *d) Opportunity recognition - the ability to connect know-how to a commercial application.

2. Many dimensions of climate have been shown to influence innovation and entrepreneurship. Which the following is not associated with innovation and entrepreneurship? a) Time and space for generating new ideas. b) Challenge and involvement to stimulate innovation. c) Complete trust and lack of conflict. *d) Support for risk-taking and mistakes.

3. The Kirton Adapter-Innovator (KAI) scale is a psycho-metric approach for assessing the creativity of individuals. By a series of questions it seeks to identify an individuals attitudes towards originality, attention to detail and following rules. It seeks to differentiate “adaptive” from “innovative” styles. Which of the following is not true? a) Adaptors focus on 'doing better'. b) Adaptors create stretch solutions. *c) Innovators create more acceptable solutions. d) Innovators reconstruct problems and assumptions.

4. Nelson & Winter develop the notion of organizational routines to help explain the behaviour and evolution of organizations. Which of the following is not a characteristic of routines: a) Regular and predictable. b) Collective, social and tacit. *c) Easily observable and measured. d) Guide cognition, behaviour and performance.

5. The characteristics of a creative mind include: a) Highly selective to data. b) A fast, patterned response. *c) Willingness to suspend judgement. d) Strong technical problem-solving capability.

6. Cognitive maps are a useful methods to encourage creativity and promote innovation. Which of the following is not a benefit of using cognitive maps? *a) Help to build consensus. b) Make assumptions explicit. c) Involve different stakeholders. d) Can be used individually, or in groups.

7. Three different aspects interact to promote or constrain creativity and innovation.

Which of these is not a typical example? a) Personality and cognitive style. b) Process of creative problem-solving. *c) Tools and techniques for creativity. d) Climate and culture.

8. The concept of "organizational slack" was developed to identify the difference between resources currently needed and the total resources available to an organization. Which of the following is not a characteristic of slack? a) Organizational slack represents a static inefficiency. *b) Tends to optimize performance and increase efficiency. c) Organizational slack can act as a dynamic shock absorber. d) Tends to be self-reinforcing due to positive feedback.

9. A number of models of the creative process can be helpful to those who need to engage in innovation and entrepreneurship. One proven and practical process for challenging the way we perceive things includes three main stages. Which of these is not a stage in the process? *a) Raising the resources. b) Understanding the opportunity. c) Generating ideas. d) Planning for action.

10. Organizational culture is important for innovation, but the concept of organizational climate is preferable. Which of the following is not true? a) Climate is easier to assess and measure. b) Culture cannot be directly observed. c) Culture is more difficult to influence or change. *d) Climate explains more of the variance in performance.

11. Schein identifies a number of surface manifestations of organizational culture, most of which influence the degree and direction of innovation. Which of the following is not such a manifestation of culture?

a) Bulidings, facilities and tools. b) Rites and rituals. c) Heros and role models. *d) Products and services.

12. The successful framing of problems or opportunities demands a number of disciplines. Which of the following is not desirable? a) Consider many, varied alternatives. *b) Prioritize implementable solutions. c) Craft specific but open problem statements. d) Ignore limiting or restrictive criteria.

13. The cognitive abilities necessary for creativity include all but which of these characterstics? a) Implementation and improvisation. b) Intelligence to interpret and manipulate information. c) Attention and perception to acquire and assess knowledge. d) Wisdom to select and filter information.

14. Venture capitalists assess business plans in different ways. However, which of the following would not be expected to encourage funding? a) Personality and experience of the entrepreneurs. b) Market and competitior assessment. *c) High-technology product or service. d) Financial projections.

15. De Bono introduced the term lateral thinking to describe alternatives to logical thought, and has a long and distinguished career promoting applied creative thinking.

Lateral thinking can be helped by a number of methods and techniques. Which of the following is not an example? a) Distort the relationships or cause and effect. *b) Use brainstorming. c) Remove or suspend an assumption or goal. d) Use a metaphor or character.

Chapter 6: Sources of innovation 1). ‘Knowledge push’ refers to: A. a software tool for accelerating product development

B. creating innovation opportunities from the results of knowledge production –for example through R&D* C. a government policy approach to fund high tech cities D. a venture capital agency

2). Innovations only emerge as a result of scientific R&D True?

False?*

3). Disruptive innovation always occurs when a new technology replaces an existing one True?

False?* 4). ‘Mass customisation’ refers to: A. an improved version of Henry Ford’s original approach for car manufacturing B. an approach which tries to customise products/services to specific user needs without incurring cost penalties of high variety production* C. a series of innovations in the Catholic church

5). User-led innovation is a marketing technique which involves asking potential users whether they will adopt an innovation

True?

False?* 6). ‘Jugaad innovation’ refers to: A. A Bollywood film B. An approach to innovation which emphasises improvisation and simple solutions* C. A project management tool for accelerating product development

7). Government can influence the rate and direction of innovation through: A. Regulation?* B. Providing incentives* C. Public procurement*

D. Advertising on political broadcasts

8). Accidents and mistakes are sometimes a rich source of innovation True?* False 9). Innovations can always be traced back to a single source True?

False*

Chapter 7: Search strategies for innovation

1). ‘Sending out scouts’ is: A. a technique to enhance peripheral search for innovation opportunities* B. a strategy used in military manoeuvres C. a market research tool based on working with community groups

2). ‘Ethnography’ refers to D. the study of handwriting E. a tool (originally derived from anthropology) to understand user needs by observing closely their behaviour in context* F. a market research tool based on questionnaire surveys

3). 'Jobs to be done' is an approach to project management designed to allocate resources to project stages True?

False?*

4). Benchmarking is...

A. A systematic comparison amongst enterprises or processes/products/ services as a way of identifying gaps for innovation opportunities* B. A form of legal innovation

C. The act of painting identifying marks on finished products to ensure the oldest leave the warehouse first

5). Design thinking is A. A computer-based approach to product design using 3D modelling B. A systematic framework for thinking about innovation which emphasises bringing in the user perspective from the very start* C. An approach to product design based on design rules D. A way of ensuring product design conforms to legal requirements

6). Lead users are early adopters prepared to share experiences and insights to help shape the development of innovation at an early stage True?* False?

7). Which of these is not a tool for identifying innovation opportunities?

A. B. C. D.

Focus groups and user panel testing Conjoint analysis Scenarios and roadmapping Brand recognition testing*

8). ‘Absorptive capacity’ refers to: A. Performance measurement of sponges and tissue paper B. The ability of an organization to recognize, acquire, assimilate and use new knowledge from external sources* C. The knowledge base of the enterprise, measured in terms of the number of university degrees of its staff

Chapter 8: Innovation networks

1). A supplier development programme involving a major buyer firm and several of its key suppliers offers an opportunity for establishing a learning network.

True?* False?

2). The theory of networks talks about ‘emergent properties’ – essentially where the whole is greater than the sum of the parts. Which of the following is not an emergent property of an innovation network?

A. Bringing together different knowledge sets to solve a particular complex problem B. Maximising problem-solving capabilities by getting more (and different) minds on the job C. Sharing the risks around exploring and exploiting new ideas D. Reducing the catering costs of network meetings

3). Setting up innovation networks requires a legal contract between organizations.

True?

False?*

4). In innovation networks, bigger is always better - the more players in the network the more effective it is?

True?

False?*

5). Emergent properties are A. houses which come on the market after a fixed legal period B. characteristics of a network which emerge as a result of interaction amongst the players C. hidden benefits in a product innovation which only come out after a period of use D. characteristics of networks set up in newly industrialising countries like Brazil or India

6). Innovation networks are only used in new product development and do not apply in service sectors.

True?

False?*

7). Which of the following is not a benefit which could emerge from an innovation network?

A. getting access to different and complementary knowledge sets B. reducing risks by sharing them C. accessing new markets and technologies D. priority access to major cultural events*

8). Firms join innovation networks primarily to reduce their costs.

True?

False?*

9). Innovation networks can only be set up with firms who are in the same geographical area.

True?

False?*

10). Innovation network participants must always be large organizations because they can spare the time to talk with others.

True?

False?*

11). Innovation networks can be set up amongst competing firms.

True?* False?

Chapter 09: Managing uncertainty

1 Uncertainty increases during the life of an innovation project a. True b. False *

2 Financial measures are the only way to judge innovation projects? a. True? b. False? * 3 Concept testing is: a. An approach to explore innovation options with potential users to refine the project scope * b. A movement in modern art c. A financial management tool to assess relative values of share portfolios 4 Assembling and presenting a business case for an innovation only applies to entrepreneurial start-ups a. True b. False * 5 Portfolio management is: a. A computer-based filing system. b. A set of tools for assessing and comparing innovation projects. * c. A concept in engineering related to interlinked product features. d. A financial evaluation tool.

6 Which of these can result from a lack of portfolio management? a. No limits to the number of innovation projects taken on* b. Reluctance to ‘kill’ projects under development* c. High failure rates in terms of cost and time overruns* d. Too many low risk projects, lack of ‘stretch’

7 To be effective, scenario planning must satisfy a number of conditions. Which of the following is not essential? a) Compelling problems. b) Inclusive participation. c) Normative goals.* d) Plausible outcomes.

8 The design of a Delphi study for forecasting the future should follow all but which of the following guidelines? a) Identify a broad community of experts. b) Consist of a number of iterations. c) Feature interviews and workshops.* d) Include questions of timing and probability.

9 Which of the following techniques is least effective for identifying radical innovations?

a. b. c. d.

Market and customer segmentation.* Scenario planning.

Lead user involvement.

Focus groups.

10 The innovation funnel is: a. A portfolio approach to managing projects. b. A framework for the increasing resource commitment/decreasing uncertainty relationship.* c. A type of forecasting method. d. A software tool to assess risk and uncertainty.

11 Which of the following is not typically needed for a business plan: a. b. c. d.

Assessment of the market opportunity.

Barriers to entry and competitor analysis.

Identification and planning for key risks.

High-technology product or service.*

12 Which of the following is not important when choosing the most appropriate forecasting method? a. b. c. d.

Mathematical sophistication.* Rate of technological and market change.

The organization’s planning horizon.

The resources available for forecasting.

Chapter 10: Creating new products and services

1. A wide range of methods and techniques are available for identifying potential innovations in the external environment. Some of these are more suited to radical innovations than more routine product development. Which of the following techniques is least effective for identifying radical innovations: a) Lead user involvement. *b) Market and customer segmentation. c) Focus groups. d) Scenario planning.

2. Many factors contribute to the success or failure of a new product. One of the factors found to make a difference is: a) High expenditure on research and development.

b) Significant customer involvement. c) Strong project management. *d) Use of external technology.

3. What of the following elements would you not expect to find in a stage-gate process for new product development? a) Clear criteria for passing through a gate. b) A specific number of stages and gates for different project types. *c) Fewer stages and gates for more radical or risky projects. d) Fewer stages and gates for more incremental or lower risk projects.

4. Which of the following is not a fundamental difference between manufacturing and service operations? a) Perceptions of performance and quality are more important in services. b) Many services demand high levels of contact between the operations and ultimate customer. c) Services are associated with higher levels of customer loyalty. d) The inability to store services can create problems with capacity management.

5. The service–process matrix provides a useful way of identifying the key management challenges of an operation. The matrix classifies operations in terms of two dimensions. Which of the following is not true? *a) Service shops have high customer interaction and high labour intensity. b)Service factories have low customer interaction and low labour intensity. c) Mass services have low customer interaction, but high labour-intensity. d) Professional services have high customer interaction and high labour intensity.

6. Which of the following factors generally does not positively influence new product success? a) Pre-development process. b) Marketing synergy. c) Early concept definition. *d) Strong project management.

7. Gary Lynn and Richard Reilly have tried to identify in a systematic way the most common factors that contribute to successful product development, focusing on what they call “blockbuster” products. Which of the following is not a predictor of success? a) Improvisation. *b) First to market. c) Clear & stable vision. d) Collaboration under pressure.

8. Studies of new product development suggest four main types of team structure. which of the following is not a valid description? a) Functional structure - a traditional hierarchical structure where communication between functional areas is largely handled by function managers and according to standard and codified procedures. b) Heavyweight product manager structure – essentially a matrix structure led by a product (project) manager with extensive influence over the functional personnel involved but also in strategic directions of the contributing areas critical to the project. By its nature this structure carries considerable organisational authority. *c) Lightweight product manager structure - a project-based structure but where a project manager provides an over-arching functional expertise. d) Project execution teams - a full-time project team where functional staff leave their areas to work on the project, under project leader direction.

9. Examination of the actual ways of organizing new product and service development suggests different organizational configurations provide several common elements.

Which of these is generally not such an organizing factor? a) Shared knowledge and/or technical information base. b) Control mechanisms, either impersonal or inter-personal. *c) Resource allocation and performance measurement. d) External linkages with customers, partners or suppliers.

10. A simplified four-stage model is sufficient to discriminate between the various factors which must be managed at different stages of development. Which of the following is not normally a stage in this process? a) Concept generation – identifying the opportunities for new products and services. b) Product development- translating the selected concepts into a physical product. c) Project assessment and selection – screening and choosing projects which satisfy certain criteria. *d) Production planning - manufacturing design and prototyping.

11. Concept development can be supported by a number of tools and methods. Which of the following is not normally used to help concept development? *a) Quality Function Deployment (QFD). b) Customer focus groups. c) Lead-users. d) Latent needs analysis.

12. Which of the following would not normally be included in Quality Function Deployment (QFD)? a) Choose appropriate units of measurement and determine target values based on customer requirements and competitor benchmarks.

b) Establish the relationship between the customer requirements and technical product characteristics. *c) Market trials and prototyping. d) Identify customer requirements, primary and secondary, and any major dislikes.

13. Which of the following techniques is the least popular? a) Prototyping. *b) Lead-users. c) Segmentation. d) Experimentation.

14. Research confirms that the most effective organization of development depends on the novelty of the project. Which of the following is not true? *a) Less novel projects have a greater involvement of lead users. b) Heavyweight project managers and cross-functional teams are a more effective combination for high novelty projects. c) Customers are more likely to be involved in the development and commercialisation of novel products and services. d) More novel projects involve more market experimentation and external experts.

15. Potential projects can be assessed by a number of criteria. Which of the following is not commonly used? a) Core competencies. b) Risk of technical failure. c) Risk of market failure. *d) Strategic clusters.

16. Which characteristics are not positively associated with the rapid diffusion and widespread adoption of an innovation? a) Observability. *b) Complexity. c) Trialability. d) Compatibility.

17. The adoption of an innovation depends on its relative advantage. Which of the following is not generally considered to be a relative advantage? *a) High attribute gap between the innovation and expectations. b) High degree of primary benefits. c) High degree of secondary attributes. d) High degree of non-economic factors.

18. Observability and trialability are normally positively associated with diffusion and adoption, but in what circumstances might these limit diffusion and adoption? a) Promote imitation. b) Improve proto-typing. *c) Reveal shortcomings. d) Provide feedback.

19. The most common model of the process of the diffusion of innovation is the epidemic or 'S-curve' model. This is useful, but is based on a number of unrealistic assumptions. Which of these is not an assumption of the basic epidemic model? *a) The population consists of two different groups, adopters and imitators. b) The population is homogeneous. c) The population has perfect knowledge of the innovation. d) Information is spread by contact and observation.

Chapter 11: Open innovation and collaboration

1) Which of the following is not a common reason why do organizations collaborate? a) To reduce the cost of technological development or market entry. b) To reduce the risk of development or market entry. *c) To increase control of new product development. d) To increase potential markets for new products.

2) Open innovation means: a) an approach to risk management in innovation. *b) a model for organizing the process where firms seek to source ideas from inside and outside. c) a board-level commitment to unlimited funds for innovation activities. d) an innovation project with no limit on the number of staff employed.

3) Which of the following is a potential disadvantage of Open Innovation? a) Reduces the technological uncertainty of development b) Reduces the costs of internal R&D *c) Increases the reliance on complementary capabilities d) Increases the pool of knowledge

4) Learning through collaboration is difficult. Which of the following can constrain learning in an alliance? a) Common organizational cultures. *b) Levels of tacit or systemic knowledge. c) Different industry or sector. d) Diversity of product markets.

5) Lead users have a number of important defining characteristics. Which of the following is not typical of a lead user? *a) Technologically more advanced than competitors. b) Recognize future market requirements early. c) Positioned to benefit more from innovations. d) Perceived to be innovative by their peers.

6) In practice, which is the least significant factor affecting the decision to acquire external technology? a) competitive advantage. b) market expansion. c) Complementary assets. *d) transaction costs.

7) Which of the following is not a typical potential risk associated with collaboration? a) leakage of information. *b) establishing standards. c) loss of control or ownership. d) divergent aims and objectives.

8) What is an advantage of transitory alliances over joint venture? a) Careful planning and development of partnerships. b) Partner choice is based on reputation. c) Commitment depends upon trust. *d) Focus reduces complexity relationships.

9) Which factor is the least significant for the knowledge acquisition strategy of a firm? a) competitive significance of the technology

*b) cost of the technology c) complexity of the technology d) codifiability of the technology

10) Which of the following is least important for the success of an alliance? *a) Past collaboration experience b) Establishing ground rules c) Clearly defined objectives d) Choice of partner

11) Which of the following factors is not a significant influence on the success of collaboration between firms and research organizations? a) Previous links b) Commitment c) Communication *d) Proximity

12) Which of the following is not an example of a horizontal relationship? a) cross-licensing *b) customer alliances c) consortia d) collaboration with competitors

13) Which is not a characteristic of a formal joint venture company structure? *a) knowledge-leakage b) long-term relationship c) complementary know-how d) dedicated management

14) Which is not a relevant supply market for innovation? a) Homogeneous - suppliers have very similar performance b) Differentiated - suppliers differ greatly and one clearly superior *c) Competitive – suppliers are all highly efficient and competitive d) Indeterminate - suppliers differ greatly under different conditions

15) Which is not typical of ‘lean’ supply relations? *a) Most competitive suppliers and contracts b) Cost and profit transparency c) Vendor assessment, plus development d) Mutual learning, shared experience and investment

Chapter 12: Entrepreneurship and venture creation

1) Which of the following is not a common trigger for the creation of a new venture? a) Significant event at home or work. b) Age, education and relevant work experience. *c) Government policy and support. d) Recognition of an opportunity.

2) Which of the following is not one of the three basic types of entrepreneur? *a) Wealth. b) Lifestyle. c) Innovative. d) Growth.

3) What is not a common characteristic of an entrepreneur? *a) Highly reflective and rigorous. b) Highly disciplined and focused. c) Emphasis on action and execution. d) Emphasis on involvement and relationships.

4) A typical psychological profile of an entrepreneur would not necessarily include: a) High need for achievement. b) High need for challenging goals. c) High need for feedback on personal performance. *d) High need for personal wealth.

5) Social entrepreneurs are different from conventional commercial entrepreneurs in many respects. Which of the following is not a significant difference between the two types? *a) Personal passion and drive. b) Motives to create a new venture. c) Timeframes for development. d) Resource employed to achieve change.

6) Technology entrepreneurs are different to conventional entrepreneurs in all but which of the following ways: a) Education. b) Experience. c) Age. *d) Motives.

7) The technology clusters in Silicon Valley and Boston in the USA are attributable to a number of historical factors. Which of the follow is not a significant explanatory factor? a) Close to world-class technological universities. b) Availability of private venture captial and expertise. *c) Direct government support for industry and innovation clusters. d) Indirect government support for related industries and research.

8) Which of the following is not typically associated with innovation by smaller firms: a) Increased external links. b) Increased exports. *c) Increased profitability. d) Increased employment.

9) A business plan for a new venture has many components. Which of the following would you not expect to be a significant component in a business plan? *a) Demonstration of technological merit and novelty. b) Identification of the key markets and customers. c) Assessment of potential competitors and barriers. d) Estimations of cash-flow and financial requirements.

10) Which of the following is not a common source of initial funding for a new venture? a) Family or friends. b) Business angels. c) Venture capitalists. *d) Personal savings or borrowings.

11) Almost two-thirds of new ventures fail within the first two years. Which of the following is not a common reason for failure? *a) Weak business concept. b) No strategy for growth. c) Little management ability or experience. d) Poor financial control.

12) Successful high-growth new ventures are associated with all but which of the following characteristics? a) Strong external links and relations. b) International and export markets. *c) Expenditure on research and technology. d) Expenditure on design and innovation.

13) For an academic entrepreneur based in a university, licensing-out a technology to a commercial partner may be more appropriate than forming a spin-out venture because: a) the potential for profit is greater. b) the degree of personal control is greater. c) it is more appropriate for enabling technologies. *d) it facilitates dual academic and commercial development.

14) Listing on the Alternative Investment Market (AIM) in London is more attractive to many new ventures because of a number factors. Which of the following is not a common benefit? a) Lighter regulatory requirements. b) Lower cost compared to the main financial exchanges. *c) Access to venture capital. d) Support of nominated professional advisors.

15) Which of the following stages of funding of a new venture attract the least investment and interest from venture capitalists? *a) Start-up. b) Expansion. c) Management buy-in (MBI). d) Management buy-out (MBO).

Chapter 13: Creating business value

1) Cross-functional teams are an effective way to promote knowledge-sharing. Which of the following is generally not true of such teams? *a) Encourage group cohesiveness and consensus. b) Provide access to external knowledge. c) Generate a wider range of options. d) Extend the knowledge base.

2) One of the central challenges in knowledge management is to encourage the exchange of tacit knowledge between communities of practice. Which of the following is not a useful means to encourage such exchange of knowledge: a) Knowledge translators. *b) Knowledge intranets. c) Knowledge brokers. d) Boundary objects.

3) There are many proven mechanisms to help transfer knowledge across an organization. Which of the following is not a widely-accepted method? a) Boundary objects, that is tasks, processes or projects shared by different groups. b) Brokers, with weak relationships between many different groups.

*c) Gatekeepers, who control access to different groups. d) Translators, that is staff based in more than one group.

4) Using intellectual property rights (IPR) as a means of commercialising an innovation has many advantages, but also significant risks. Which of the following is not a common problem? a) Opportunity costs of search, registration and renewal. *b) Restricts market applications. c) Public registration and disclosure. d) Ability to enforce rights.

5) David Tranfield and his colleagues map the different phases of the innovation process to identify the knowledge routines in each of the innovation phases. Which of the following is not included in this model? a) Realisation - the application and implementation of knowledge to a specific innovation. b) Discovery - searching and capturing knowledge. *c) Learning - transferring knowledge from individuals to the organization. d) Nurturing - developing and supporting an innovation.

6) Which of the following conditions is not necessary for the granting of a patent: a) Novelty, no part of prior art. *b) Demonstrated commercial or financial potential. c) Inventive step, non-obvious. d) Demonstrated application or utility.

7) Patents can be used as an indicator of innovation. Which of the following is the least reliable method? *a) Number of patents granted. b) Citations of patents. c) Science linkage. d) Technology life cycle.

8) Licensing an innovation to another firm, rather than developing and commercialising it in-house, has the following advantage: a) Increases managerial control of development and commercialisation. *b)Reduces the cost and risk of development and commercialisation. c) Increases the profitability of development and commercialisation. d) Reduces managerial control of development and commercialisation.

9) Knowledge is different to information and data. Which of the following is not generally true? a) Knowledge is information that has been put into some context. b) Information is data that has been structured in some way. *c) Knowledge is more easily shared than information. d) Data is more easily stored than information.

10) Richard Hall's work on organizational memory and competencies identifies a number of sources of advantage. Which of the following is not a typical basis of competencies? a) Position, based on prior decisions and investments. *b) Products, differentiated from competitors. c) Intangible assets, such as intellectual property or reputation. d) Cultural, organisational and individual.

11) Which of the following characteristics of communities of practice is not true? *a) Promote the sharing of knowledge across different communities. b) Promote the sharing of knowledge within communities of practice. c) Are organized around common tasks, professions or projects. d) Are a means to link individual and organizational learning.

12) Nonaka proposes the concept of a social learning cycle. In this model how does the codification knowledge occur primarily? a) Socialisation. *b) Externalisation. c) Combination. d) Internalisation.

13) Some types of knowledge are more individual, others more collective. Which of the following is generally not true? a) Encultured knowledge is social and collective. b) Collective knowledge is embedded in processes and routines. c) Embrained knowledge is inherently personal and individual. *d) Embodied knowledge is generic and explicit.

14) C-Space (culture-space) is a useful conceptual framework for analysis which focuses on the structuring and flow of knowledge within and between organizations. Which of the following is not true? a) Diffusion of knowledge requires codification. b) Codification reduces complexity. c) Problem-solving promotes the codification of knowledge. *d) Absorption promotes the diffusion of knowledge.

15) What is a major disadvantage of using patents as indicators of innovation? a) Patents are an output of the innovation process. *b) Many innovations are not patented. c) Patents are expensive and difficult to file. d) Many patents are not commercialised.

Chapter 14: Capturing social value

1). Social innovation always requires donations or grants, it cannot be financially viable on its own

True?

False?*

2). Social entrepreneurship follows a different process to commercial innovation True?

False?*

3). Frugal innovation approaches are only applicable in low-income emerging economies and have no relevance to 'mainstream' markets True?

False?*

4). Which of these is not an example of social innovation?

A. Emergency shelter solutions based on 3D printing in disaster zones B. Water purifying systems which can be embedded in cheap drinking straws C. LED lighting to substitute for oil and other fuel sources in rural African regions D. High energy booster drinks for athletes

5). Digital innovations are not relevant in the field of social innovation because that is concerned with interactions with people True?

False?*

6). Sustainability represents a powerful driver for innovation but firms resist it because of the costs of complying with regulations to enable it True?

False?*

7). Which of these is not an example of sustainable innovation?

A. Energy saving lightbulbs B. Electric vehicles C. Wind farms D. On-line advertising as an alternative to print

8). Responsible innovation is: A. An approach to innovation decision-making and implementation which builds on the principles of inclusion, anticipation, responsiveness and reflexivity* B. A way of allocating key roles to project teams C. A legal framework designed to make companies pay for quality problems when introducing new product innovations

Chapter 15: Capturing learning from innovation

1). Post-project reviews are a way of measuring the overall profit (or loss) arising from an innovation project True?

False?*

2). A capability/maturity approach to reviewing innovation is a tool which can only be applied to organizations over ten years old.

True?

False?*

3). There is no scope for learning about innovation management from failed projects since they would not have failed if they had been well-managed True?

False?*

4). Which of these is not a tool/method to enable learning and innovation management capability development?

A. Benchmarking B. Post-project reviews C. Proceduralised learning - such as standard operating procedures and review D. Brand-perception surveys amongst customers

5). Which of these is not a useful measure of innovation performance?

A. Size of firm by employees?

B. Number of new products or service offerings launched in the past three years?

C. Patent statistics D. Investment in R&D as a percentage of turnover