Unit 1: Definition and Concepts of Innovation
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What characterizes a limited objective in innovation?

  • Promoting experimental research
  • Achieving a broad range of products
  • Utilizing multiple innovative methods
  • Focus on a specific number of products (correct)

    • What is the primary outcome of experimental or technological development?

  • Finalization of long-term research plans
  • Creation of theoretical models
  • Substantial improvements in existing materials (correct)
  • Broad exploration of multiple methodologies

    • Which statement best describes the process of experimental or technological research?

  • It focuses primarily on outdated technologies.
  • It entails systematic work based on existing knowledge. (correct)
  • It involves spontaneous innovations without structure.
  • It is based solely on theoretical knowledge.

    • What is a common conclusion reached after the experimental or technological development process?

    <p>The testing and trial of a prototype or pilot plant</p> Signup and view all the answers

    How are results of a limited objective in innovation treated legally?

    <p>They are usually patentable</p> Signup and view all the answers

    What is the key aspect of innovation, according to the Oslo Manual definition?

    <p>The commercial aspect of market introduction</p> Signup and view all the answers

    According to Joseph Schumpeter, which of the following is NOT one of the three key phases of economic development?

    <p>Sustainability</p> Signup and view all the answers

    What is the primary role of inventions within the context of innovation as per Schumpeter's perspective?

    <p>Inventions are considered exogenous factors without economic activity.</p> Signup and view all the answers

    What is a key characteristic of innovation?

    <p>It involves introducing something new into a context.</p> Signup and view all the answers

    Which of the following statements accurately reflects the concept of innovation?

    <p>Innovation can involve new or improved processes.</p> Signup and view all the answers

    According to the Frascati Manual, what is essential for an idea to be considered an innovation?

    <p>It must be transformed into a sellable product or process.</p> Signup and view all the answers

    What conclusion can be drawn about innovation as per the content?

    <p>Market introduction is essential for an innovation to occur.</p> Signup and view all the answers

    In terms of economic growth, what did Schumpeter highlight regarding the selection of inventions by companies?

    <p>Existing inventions can be selected to create new production functions.</p> Signup and view all the answers

    Which of the following best describes the term 'innovation'?

    <p>It includes the introduction of new products, services, or processes.</p> Signup and view all the answers

    What obstacle is commonly faced in the innovation process?

    <p>Routine and resistance from organizations.</p> Signup and view all the answers

    How does the Oslo Manual define innovation in terms of products?

    <p>Innovation can include new or improved saleable products.</p> Signup and view all the answers

    Which component is NOT required for something to be considered innovation?

    <p>Cost efficiency</p> Signup and view all the answers

    Which aspect is explicitly mentioned as NOT being a requirement of innovation?

    <p>Creating completely new services</p> Signup and view all the answers

    How does the concept of innovation relate to quality management?

    <p>It involves creating better solutions to meet societal needs.</p> Signup and view all the answers

    What is NOT a necessary condition for something to be classified as an innovation?

    <p>It must be solely based on research findings.</p> Signup and view all the answers

    What does Joseph Schumpeter define innovation as?

    <p>A new combination of existing resources</p> Signup and view all the answers

    What does the introduction of a new organizational method exemplify?

    <p>The diverse nature of innovation.</p> Signup and view all the answers

    Which of the following describes a characteristic of innovation?

    <p>Social and economic progress</p> Signup and view all the answers

    According to the content, firms can gain competitive advantage through innovation by:

    <p>Turning changes into business opportunities</p> Signup and view all the answers

    What is the significance of an idea finding its way to the market?

    <p>It transforms the idea into an innovation.</p> Signup and view all the answers

    What is NOT considered a reason to innovate?

    <p>Cost-cutting measures</p> Signup and view all the answers

    Which of the following statements is TRUE regarding innovation?

    <p>Innovation requires ideas and novelty</p> Signup and view all the answers

    In the context of innovation, a gap refers to:

    <p>Unmet needs in the market</p> Signup and view all the answers

    What does Peter Drucker assert about innovation?

    <p>It is governed by a systematic analysis of changes</p> Signup and view all the answers

    What is the primary goal of innovation as described?

    <p>Value generation</p> Signup and view all the answers

    Which type of knowledge is described as being tacit and difficult to codify?

    <p>Know How</p> Signup and view all the answers

    Which of the following best differentiates between 'Know About' and 'Know How'?

    <p>'Know About' is theoretical; 'Know How' is practical.</p> Signup and view all the answers

    What challenge does tacit knowledge present for organizations?

    <p>It is difficult to transmit effectively.</p> Signup and view all the answers

    In the context of innovation, what are the essential components highlighted?

    <p>Value, change, and knowledge</p> Signup and view all the answers

    What does the term 'Explicit knowledge' refer to in the innovation context?

    <p>Knowledge that can easily be documented and shared</p> Signup and view all the answers

    Which of the following statements best captures the relationship between knowledge and innovation?

    <p>Knowledge is foundational for generating innovative changes.</p> Signup and view all the answers

    What is a significant outcome of having both 'Know About' and 'Know How' in an organization?

    <p>Developed competitive advantages through practical application</p> Signup and view all the answers

    What characterizes tacit knowledge compared to explicit knowledge?

    <p>Personalized and difficult to communicate</p> Signup and view all the answers

    What is a key challenge in relying on explicit knowledge for competitive advantage?

    <p>It is easily imitated or copied.</p> Signup and view all the answers

    Which element is NOT associated with an innovative organization structure?

    <p>Bureaucratic structure with strict hierarchy</p> Signup and view all the answers

    How is tacit knowledge typically acquired?

    <p>Through experience and practice</p> Signup and view all the answers

    Which statement about explicit knowledge is true?

    <p>It is systemized and can be easily shared.</p> Signup and view all the answers

    What is a common practice in operational organizations?

    <p>Hierarchical control over processes</p> Signup and view all the answers

    What type of reward system is typically found in innovative organizations?

    <p>Rewards based on participation in projects</p> Signup and view all the answers

    Which is NOT a characteristic of explicit knowledge?

    <p>Difficult to document</p> Signup and view all the answers

    Study Notes

    Unit 1: Definition and Concepts of Innovation

    • Innovation is bringing something new and unknown into a specific context. It challenges routine and faces resistance from individuals and organizations.
    • Innovation involves transforming an idea into a new or improved salable product or process in industry and commerce.
    • An idea, invention, or discovery becomes innovation when it enters the market.
    • Innovation is a set of activities within a given time and place that leads to the successful introduction of a new or improved product, service, or management/organizational technique into the market for the first time.
    • Innovation is synonymous with producing, assimilating, and successfully exploiting a novelty in economic and social spheres, providing solutions to problems and societal needs.
    • Innovation includes the introduction of a new product, production method, marketing method, or organizational method within a company.
    • Innovation is the transformation of an idea into a new saleable product, an operational process in industry and commerce, or a new method of social service. A crucial aspect is commercialization; if there is no market introduction, there is no innovation.
    • Innovation is not simply creating new products, inventing something non-commercial, or research. It isn't necessarily linked to technology, nor does it automatically generate economic progress. Ideas alone are not innovation.

    Innovation vs. Research

    • Research is not essential for innovation. While research can be a path to accessing technology, other methods include acquiring technology, embedded technology in capital goods, licenses, technical assistance, and agreements with other companies (alliances).
    • Innovation and research are distinct concepts: Research is a process, whereas innovation is the introduction of something new to the market or society.
    • Research can be categorized as basic or fundamental, applied, or experimental or technological.

    Ways to Innovate: Types of Innovation

    • Innovations can focus on product, process, commercialization, and organization.

    Four Types of Innovation

    • Product Innovation: Innovating existing products (improving them, creating an entirely new product) to expand market reach or satisfy new needs.
    • Process Innovation: Improving internal operational methods to boost efficiency, quality, or cost-effectiveness.
    • Business Model Innovation: Creating new revenue streams or service offerings.
    • Management Innovation: Changing organizational structures, management techniques, or leadership strategies to support and drive innovation.

    Where to Innovate: Examples for Schumpeter

    • New good
    • New production method
    • New market
    • New supply source
    • New market structure

    Technological Innovation Examples

    • New material (e.g., graphene)
    • New components/sub-systems (e.g., airbags, circuit boards)
    • New products based on simple principles (e.g., electric toothbrush)
    • New complex systems (e.g., autonomous vehicles, internet)
    • New packaging/use (e.g., ibuprofen, coffee)
    • New ingredients (e.g., fiber optics, bags, environment considerations)
    • New procedures/equipment (e.g., 3D printers for prototypes)

    Commercial Innovation Examples

    • New product use/application
    • New product distribution strategies (e.g., franchising, online shopping, vending)
    • New use of existing products (e.g., influencers)
    • New commercial systems (e.g., PayPal, 1-Click payments, Vinted)

    Ways to Innovate: Organization

    • Organizational structure is essential to foster innovation within businesses with facilities designed to promote cross-functional collaboration.
    • An example, Steve Jobs, personally designed Pixar facilities to encourage the exchange of ideas and collaboration. A central atrium with restrooms, lockers, and a cafeteria ensured people from different departments interacted.

    Impact on Market: Types of Innovation

    • Architectural innovations: Significant improvements that build on existing market products.
    • Disruptive innovations: New technologies or business models that significantly impact the market.
    • Incremental innovations: Continuous, gradual improvements to existing products and services.
    • Radical innovations: Transformative breakthroughs that create new markets.

    Knowledge as a Basis for Innovation

    • Precisely, innovation is any change grounded in knowledge that adds value.
    • Innovation stems from the application of knowledge and generates value.
    • Two important knowledge types are:
      • Know-about: Easily transferable public knowledge.
      • Know-how: Tacit and difficult to codify, based on skills and experiences.
    • Combining tacit and explicit knowledge is essential for successful innovation within companies.

    Types of innovation based on organizational aspects

    • Operational organization: The type of organizational structures used for efficient resource allocation and operational planning, with defined hierarchical controls.
    • Innovative organization: A flat hierarchical, process-driven structure emphasizing idea generation. It is built on autonomy, project participation, and the need to identify individuals with technical and creative insight.

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    Unit 1: Definition and Concepts of Innovation PDF

    Description

    Explore the fundamental definition and concepts of innovation in this quiz. Understand how innovation transforms ideas into products and processes while navigating resistance in various contexts. Test your knowledge of the key elements that define innovation within economic and social spheres.

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