Process Product Innovation Quiz

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Questions and Answers

Which type of innovation involves making relatively minor changes from existing practices?

Incremental innovation (correct)

Planned innovation

Radical innovation

Accidental innovation

In which type of innovation is the entire architecture of a product changed?

Competence-enhancing innovation

Modular innovation

Competence-destroying innovation

Architectural innovation (correct)

Which type of innovation requires completely new competences instead of building on existing competences?

Competence-enhancing innovation

Sustaining innovation

Competence-destroying innovation (correct)

Disruptive innovation

What type of innovation first creates a new market and subsequently cannibalizes existing ones?

Disruptive innovation Signup and view all the answers

Which type of technological innovation results from serendipity but is usually the result of an R&D effort?

Accidental innovation Signup and view all the answers

What type of process innovation focuses on innovations in the way an organization conducts business?

Process product innovation Signup and view all the answers

What term does Joseph Schumpeter use to describe the process of constantly disrupting the economic structure?

Creative Destruction Signup and view all the answers

What is considered the driving force behind Creative Destruction according to Schumpeter?

Innovative entrepreneurs Signup and view all the answers

How are economic cycles of the past two centuries linked to innovation?

Linked to innovation in specific sectors Signup and view all the answers

What percentage of tech firms were founded by individuals who had worked together in the past according to the data provided?

50% Signup and view all the answers

How does previous experience impact entrepreneurial activity, according to the information provided?

Entrepreneurs replicate or modify ideas from their past employments Signup and view all the answers

What type of networks play a significant role in entrepreneurial success, as per the text?

Strong social networks Signup and view all the answers

What was Thomas Edison's main focus in his work as an inventor?

Developing practical and commercially viable inventions Signup and view all the answers

Which statement best describes the role of firms in the innovation process?

Firms perform the majority of R&D, mainly in the form of applied research and development. Signup and view all the answers

Why do firms often hesitate to invest in R&D activities?

R&D investments are too risky and the results are uncertain. Signup and view all the answers

What is the primary reason why firms invest in R&D?

To create new products, processes, and services that differentiate them from competitors. Signup and view all the answers

How do firms benefit from both internal (own) R&D and external R&D?

Internal R&D allows firms to develop unique technologies, while external R&D provides access to complementary knowledge. Signup and view all the answers

What is the main source of R&D funding in most developed countries?

Industry Signup and view all the answers

What is the relationship between a firm's internal R&D and its ability to absorb and use externally generated ideas?

Internal R&D and external R&D are complementary, and firms need to invest in both to effectively absorb and use external ideas. Signup and view all the answers

Which of the following is true about the rise of corporate R&D laboratories?

They appeared in the mid-19th century due to the increasing complexity and cost of technology domains. Signup and view all the answers

What was the impact of corporate R&D laboratories during the first half of the 20th century?

They were famous for their innovations and the Nobel Prizes their scientists received. Signup and view all the answers

What has been the trend in the productivity of large corporate R&D labs in the late 20th century?

They have seen a decreasing productivity and have faced closures and downsizing. Signup and view all the answers

What is the relationship between R&D investments and influential innovations according to the text?

R&D investments by big firms and small firms/entrepreneurs are equally important sources of influential innovations. Signup and view all the answers

What does the author say is the key driver of technological evolution?

The desire of scientists and engineers to solve current technical problems Signup and view all the answers

What term does the author use to describe the frameworks or approaches that influence how technical problem solving occurs?

Technological paradigms Signup and view all the answers

According to the passage, what is a technological trajectory?

The path a technology takes through time to improve its performance Signup and view all the answers

What does the passage suggest about the relationship between technological paradigms and technological trajectories?

Technological trajectories emerge as a result of scientists and engineers working within technological paradigms Signup and view all the answers

What is the main purpose of the passage?

To explain the factors that drive the evolution of technology over time Signup and view all the answers

Study Notes

Types of Innovation

Process innovation: innovation in the way an organization conducts its business, such as new techniques for producing or marketing goods or services
Product innovation: innovation in goods and services, such as new technical specifications, quality improvements, or new products

Radical vs. Incremental Innovation

Radical innovation: a significant change from prior solutions, e.g. mRNA vaccines
Incremental innovation: a relatively minor change from existing practices

Planned vs. Accidental Innovation

Planned innovation: the result of a deliberate effort to solve a particular problem
Accidental innovation: the result of serendipity, often arising from an R&D effort, e.g. penicillin, microwave, Viagra

Architectural vs. Modular Innovation

Architectural innovation: changes the entire architecture of a product, how different components are set up and interact
Modular innovation: changes individual components of a product

Competence-Enhancing vs. Competence-Destroying Innovation

Competence-enhancing innovation: builds on existing competences
Competence-destroying innovation: requires completely new competences

Disruptive vs. Sustaining Innovations

Disruptive innovation: creates a new market and then cannibalizes existing ones
Sustaining innovation: improves existing products or services

Why Technological Innovation is Important

A healthy economy is constantly disrupted by technological innovation, leading to creative destruction and economic growth
Innovation causes cyclical instability and economic growth, with new waves of innovation starting in different sectors
Innovation stimulates investment and expansion in the economy, but eventually, investment opportunities and returns decline

Characteristics of Entrepreneurial Firms

25% of entrepreneurial firms started in a "garage" after finishing a degree
91% of entrepreneurs have previous experience in the field
50% of entrepreneurs founded firms with individuals they had worked with in the past

The Role of Firms in Innovation

Firms perform the majority of R&D in developed countries
Firms mainly perform applied research and development, with only a few performing basic research
Firms face challenges in investing in R&D, including risk, uncertainty, and difficulty in appropriating investments
Firms benefit from R&D by creating new technologies, differentiating from competitors, and absorbing external knowledge

The Role of Other Actors in Innovation

Private non-profit sector: in most developed countries, most R&D funding comes from business, with government spending less
Entrepreneurship and innovation: innovation is a key determinant of industrial development, and entrepreneurs play a crucial role in driving innovation

Technology Evolution

Technological evolution depends on scientific advances, economic, social, and political forces
Technological trajectories emerge as researchers work within technological paradigms, leading to improvements in technology over time
Example: the trend towards more powerful and smaller microprocessors (Moore's law)

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Description

Test your knowledge on process and product innovation, including technical specifications, quality improvements, and examples of both radical and incremental innovations. Explore the differences between new product innovations and process innovations.