Innovation and Product Development in Small Firms

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What is the primary reason to create new markets?

To subsidise or protect other market efforts

To create excitement attached to originality (correct)

To attract top talent

To price to market rather than to competitive pressure

What is a benefit of new markets in terms of profit?

Higher margins (correct)

Reduced risks

Lower costs

Increased competition

What is a characteristic of new markets that allows for learning and growth?

They are more profitable

They are more competitive

They require more capital

They have a forgiving nature (correct)

What is a key principle of success in new markets?

Follow one or two lower risk paths Signup and view all the answers

What is the advantage of customer-driven markets over vendor-driven markets?

They work better Signup and view all the answers

What is a benefit of new markets in terms of talent development?

You can groom new executives Signup and view all the answers

What is a key characteristic that makes small and medium-sized enterprises more innovative?

Their flexibility and willingness to try new approaches Signup and view all the answers

What is the primary focus of the 'Product-Based' Approach to product development?

Developing a product that meets internal organizational requirements Signup and view all the answers

Why do innovative entrepreneurs often start their own businesses?

Because their ideas are rejected by large established companies Signup and view all the answers

What is the main reason why a combination of both approaches is necessary for entrepreneurial success?

Because neither approach alone can deliver the desired success Signup and view all the answers

What is the key distinction between an invention and an innovation?

An innovation puts ideas into practice, while an invention is a creative idea Signup and view all the answers

What is the best way to describe the role of small firms in the innovation of new products and processes?

They are important players in the innovation of new products and processes Signup and view all the answers

What is the main idea behind Other-Box thinking?

To enter someone else's box to learn from their perspective Signup and view all the answers

What is the purpose of the Incubation stage in the creative thinking process?

To give the subconscious time to reflect on the information collected Signup and view all the answers

What is the term for the moment of insight or inspiration in the creative thinking process?

Illumination Signup and view all the answers

What is the main difference between Vertical and Horizontal thinking?

Vertical thinking digs deeper into the same hole, while Horizontal thinking digs new holes in many locations Signup and view all the answers

What is the main purpose of the Verification stage in the creative thinking process?

To validate the idea and conduct experiments Signup and view all the answers

What is the main characteristic of No-Box thinking?

It involves complete open thinking with no limits Signup and view all the answers

What is the primary focus of innovation?

Creating a product that meets the needs of a target market Signup and view all the answers

What is a successful approach to product development?

Combining understanding of product-based and market-based approaches Signup and view all the answers

What is the primary characteristic of a new market?

A market for a product that is new to everyone Signup and view all the answers

What is the primary goal of matching ideas with resources and market?

To link ideas with existing resources and market needs Signup and view all the answers

What is essential for product development?

Understanding the market and matching it with the idea for a new product Signup and view all the answers

What is the process of product development unlikely to follow?

A strictly market-based approach Signup and view all the answers

What is the primary difference between creativity and innovation?

Creativity is thinking new things, innovation is doing new things Signup and view all the answers

What is the function of a paradigm in the context of creativity?

To act as a logjam to creative thinking Signup and view all the answers

Which part of the brain is associated with lateral thinking and creativity?

Right brain Signup and view all the answers

What is the outcome of focusing too much on being logical in the early stages of idea generation?

Discouragement of the use of intuition Signup and view all the answers

What is the result of having a preconceived idea of what the world should be like?

A block to creative thinking Signup and view all the answers

What is the term used to describe the process of challenging traditional mindsets and creating new solutions?

Creative destruction Signup and view all the answers