Podcast
Questions and Answers
Which type of innovation involves making relatively minor changes from existing practices?
Which type of innovation involves making relatively minor changes from existing practices?
In which type of innovation is the entire architecture of a product changed?
In which type of innovation is the entire architecture of a product changed?
Which type of innovation requires completely new competences instead of building on existing competences?
Which type of innovation requires completely new competences instead of building on existing competences?
What type of innovation first creates a new market and subsequently cannibalizes existing ones?
What type of innovation first creates a new market and subsequently cannibalizes existing ones?
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Which type of technological innovation results from serendipity but is usually the result of an R&D effort?
Which type of technological innovation results from serendipity but is usually the result of an R&D effort?
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What type of process innovation focuses on innovations in the way an organization conducts business?
What type of process innovation focuses on innovations in the way an organization conducts business?
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What term does Joseph Schumpeter use to describe the process of constantly disrupting the economic structure?
What term does Joseph Schumpeter use to describe the process of constantly disrupting the economic structure?
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What is considered the driving force behind Creative Destruction according to Schumpeter?
What is considered the driving force behind Creative Destruction according to Schumpeter?
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How are economic cycles of the past two centuries linked to innovation?
How are economic cycles of the past two centuries linked to innovation?
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What percentage of tech firms were founded by individuals who had worked together in the past according to the data provided?
What percentage of tech firms were founded by individuals who had worked together in the past according to the data provided?
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How does previous experience impact entrepreneurial activity, according to the information provided?
How does previous experience impact entrepreneurial activity, according to the information provided?
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What type of networks play a significant role in entrepreneurial success, as per the text?
What type of networks play a significant role in entrepreneurial success, as per the text?
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What was Thomas Edison's main focus in his work as an inventor?
What was Thomas Edison's main focus in his work as an inventor?
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Which statement best describes the role of firms in the innovation process?
Which statement best describes the role of firms in the innovation process?
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Why do firms often hesitate to invest in R&D activities?
Why do firms often hesitate to invest in R&D activities?
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What is the primary reason why firms invest in R&D?
What is the primary reason why firms invest in R&D?
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How do firms benefit from both internal (own) R&D and external R&D?
How do firms benefit from both internal (own) R&D and external R&D?
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What is the main source of R&D funding in most developed countries?
What is the main source of R&D funding in most developed countries?
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What is the relationship between a firm's internal R&D and its ability to absorb and use externally generated ideas?
What is the relationship between a firm's internal R&D and its ability to absorb and use externally generated ideas?
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Which of the following is true about the rise of corporate R&D laboratories?
Which of the following is true about the rise of corporate R&D laboratories?
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What was the impact of corporate R&D laboratories during the first half of the 20th century?
What was the impact of corporate R&D laboratories during the first half of the 20th century?
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What has been the trend in the productivity of large corporate R&D labs in the late 20th century?
What has been the trend in the productivity of large corporate R&D labs in the late 20th century?
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What is the relationship between R&D investments and influential innovations according to the text?
What is the relationship between R&D investments and influential innovations according to the text?
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What does the author say is the key driver of technological evolution?
What does the author say is the key driver of technological evolution?
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What term does the author use to describe the frameworks or approaches that influence how technical problem solving occurs?
What term does the author use to describe the frameworks or approaches that influence how technical problem solving occurs?
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According to the passage, what is a technological trajectory?
According to the passage, what is a technological trajectory?
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What does the passage suggest about the relationship between technological paradigms and technological trajectories?
What does the passage suggest about the relationship between technological paradigms and technological trajectories?
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What is the main purpose of the passage?
What is the main purpose of the passage?
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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.
