Innovation and Economic Effects Quiz

The use of tools, systems, and knowledge to improve work processes, output, competitiveness, and value creation.

Introducing something new, like a device, method, or material, for practical or commercial use.

Globalization increases competition, pushing companies to constantly create new products, cut costs, and stand out from rivals.

When new technology replaces workers, leading to job losses.

The creation of new roles or tasks that need human skills and knowledge, often in the new technology itself.

When technology makes workers more productive, increasing output per person.

The change in the types of jobs, industries, and skills needed due to technology. This leads to economic activity moving to different areas.

Technologies that significantly improve productivity, creating new opportunities that outweigh potential job losses.

The path a technology follows over time, including its development and adoption. It shows how a technology evolves and its rate of acceptance in the market.

Innovations that involve changes in the way an organization conducts its business, particularly improvements in production or delivery processes. These innovations enhance efficiency or effectiveness.

Innovations that are embodied in the outputs of an organization, such as goods or services.

A significant and often disruptive change that is new and different from previous solutions. It introduces completely new technologies or concepts, breaking from traditional methods.

A relatively minor change or improvement on existing practices, typically focusing on small, gradual improvements rather than a complete transformation. It builds upon existing knowledge or technology.

Successful innovation requires considering and effectively integrating various aspects including technical, organizational, market, and social factors.

The process of refining an invention to make it practical and scalable for real-world use.

Adjusting an organization's processes and structures to effectively implement a new technology.

Characteristics that make a resource valuable, rare, durable, and difficult to imitate. These qualities are crucial for a company to gain and maintain a competitive advantage.

Knowledge or skills that are hard to express or transfer formally. They often stem from personal experience and intuition, making them unique and difficult to replicate.

Capabilities that emerge from social interactions, relationships, and organizational culture. These are complex because they are deeply ingrained and depend on many interconnected factors.

Capabilities where the source of the competitive advantage is unclear or difficult to identify. It's hard to determine how the resource creates value, making it difficult for competitors to replicate.

A capability that gives a company a competitive advantage when it is unique, valuable, and difficult for competitors to replicate.

Regular and predictable patterns of coordinated activity within an organization for performing tasks.

Unique strengths that enable a company to achieve and sustain a competitive advantage.

A process of continuous innovation and disruption, where new technologies and ideas constantly challenge existing ones, leading to a cycle of creative destruction.

Automation can increase productivity, leading to economic growth and the creation of new jobs in other sectors.

While some jobs may be lost due to automation, the overall impact on employment can remain stable if workers are able to transition into new roles.

Automation can displace workers in low- and medium-wage jobs, leading to unemployment if they cannot find new employment.

Companies investing in automation to reduce labor costs can lead to fewer human workers being needed in those sectors.

The impact of automation on employment depends on how quickly new technologies are adopted, how quick workers are to adapt, and the policies in place to support this transition.

Automation can lead to increased income inequality, as those whose jobs are automated may struggle to find new employment or experience lower wages.

Governments and businesses need to work together to make sure the benefits of automation are maximized while minimizing the negative effects on employment.

Automation can make products and services cheaper, which leads to higher disposable income, increased consumption, and more investments.

The process of new innovations replacing old ones, driving economic progress but making older firms and industries obsolete.

Innovations that build upon existing knowledge and skills, making them more efficient or powerful. They don't disrupt industries and allow businesses to leverage existing expertise.

Innovations that make existing skills and knowledge obsolete, requiring new expertise and processes. They disrupt industries, forcing firms to adapt or risk failure.

The release of resources (capital, land, employees) from declining industries and their reallocation to new, more productive sectors.

When a company shuts down due to lack of competitiveness, its capital can be used to fund new businesses, its land can be used for different ventures, and its employees can apply their skills in new industries.

The closure of firms and industries that can no longer compete effectively due to new technologies and innovations. This can lead to job losses and economic restructuring.

The creation of new opportunities, industries, and jobs as resources are redeployed to more productive and innovative uses. This leads to economic growth and progress.

Creative Destruction is a continuous process that drives economic evolution by disrupting existing sectors and creating new ones.

A collaborative model where government, academia, and industry work together to drive innovation and economic growth.

Policies and regulations by government to create an environment that supports innovation.

Universities contribute to innovation by generating new knowledge, conducting research, and developing a skilled workforce.

Industries focus on commercializing research into products, services, or processes.

Needs or goals that require innovation to achieve.

Start-ups are better at creating radical changes and introducing new products and services. Big companies are better at making gradual improvements to existing products and services.

Start-ups excel at creating disruptive innovations, while large companies focus on sustaining innovations.

Innovation is a benefit for both society and the economy, requiring government support for its development.