Unit 1: Definition and Concepts of Innovation
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Questions and Answers

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  • It focuses primarily on outdated technologies.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 (B)</p> Signup and view all the answers

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

<p>They are usually patentable (C)</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 (B)</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 (A)</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. (D)</p> Signup and view all the answers

What is a key characteristic of innovation?

<p>It involves introducing something new into a context. (C)</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. (B)</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. (D)</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. (C)</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. (A)</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. (A)</p> Signup and view all the answers

What obstacle is commonly faced in the innovation process?

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

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

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

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

<p>Creating completely new services (D)</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. (D)</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. (B)</p> Signup and view all the answers

What does Joseph Schumpeter define innovation as?

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

What does the introduction of a new organizational method exemplify?

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

Which of the following describes a characteristic of innovation?

<p>Social and economic progress (A)</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 (D)</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. (A)</p> Signup and view all the answers

What is NOT considered a reason to innovate?

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

Which of the following statements is TRUE regarding innovation?

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

In the context of innovation, a gap refers to:

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

What does Peter Drucker assert about innovation?

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

What is the primary goal of innovation as described?

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

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

<p>Know How (D)</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. (D)</p> Signup and view all the answers

What challenge does tacit knowledge present for organizations?

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

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

<p>Value, change, and knowledge (D)</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 (A)</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. (C)</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 (D)</p> Signup and view all the answers

What characterizes tacit knowledge compared to explicit knowledge?

<p>Personalized and difficult to communicate (D)</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. (C)</p> Signup and view all the answers

Which element is NOT associated with an innovative organization structure?

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

How is tacit knowledge typically acquired?

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

Which statement about explicit knowledge is true?

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

What is a common practice in operational organizations?

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

Which is NOT a characteristic of explicit knowledge?

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

Flashcards

Innovation

A novel idea that adds value and is successfully commercialized.

Having ideas

The ability to come up with new, valuable concepts.

Novelty

The process of creating something new and significantly different, going beyond just improvement.

Added Value

The benefit or usefulness an innovation provides to customers or the market.

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Answering the needs (gap)

The ability to meet existing needs or create new ones that were not previously identified.

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Commercialization Success

Successfully bringing a new idea to market and generating sales.

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Innovation – Entrepreneurship

Innovation is the tool that allows entrepreneurs to seize opportunities and create new companies, products, or services.

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Innovation – Opportunity Analysis

Analyzing changes in the environment and turning them into business opportunities.

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Innovation (Frascati Manual definition)

A process that transforms an idea into a marketable product or service, emphasizing its commercial viability.

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Innovation (Pavón and Goodman definition)

A set of activities aiming to successfully introduce a novel idea into the market as a new or improved product, service, or management/organizational technique.

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Innovation (Green Book of Innovation definition)

A process of producing, adopting, and successfully exploiting a novelty, providing fresh solutions to problems and addressing the needs of individuals and society.

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Innovation (General definition)

The introduction of a new product, production process, marketing strategy, or organizational method within a company.

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Research

The process of using systematic methods to create new knowledge and understanding, typically through experimentation and research.

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Innovation vs. Research

A fundamental difference between research and innovation lies in their purpose and outcomes.

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Ways to Innovate

Various approaches to creating new products, processes, or services, often involving experimentation and adaptation.

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Experimental or Technological Development

A systematic process of research that leverages existing knowledge and practical experience to create new materials, devices, systems, or services.

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Objective of Experimental Development

The focus of experimental or technological development is to create concrete innovations that are ready for the market.

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Process of Experimental Development

The process typically includes testing prototypes and conducting pilot plant trials to validate the innovation's effectiveness before full-scale production.

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Measurable Results of Experimental Development

The outcome of experimental or technological development can often be patentable, demonstrating a significant advancement in technology or invention.

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What is innovation?

The process of turning an idea into a new or improved good, service, or method that's introduced to the market. This introduction to the market is crucial for it to be considered innovation.

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Is innovation always about creating something new?

Innovation doesn't always mean creating something completely new. It can also be about improving existing products or services.

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What's the difference between invention and innovation?

An invention, by itself, is not innovation. It needs to be put into practice and introduced to the market to be considered innovation.

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Who was Schumpeter and what did he think about innovation?

Joseph Schumpeter, an Austrian economist, emphasized the importance of innovation as one of the core drivers of economic progress.

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What are the three phases of economic development?

Schumpeter viewed innovation as a key part of economic development, alongside invention (the initial creative act) and dissemination (spreading the innovation).

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How did Schumpeter view inventions?

Schumpeter believed that inventions don't necessarily have economic impact until they're put into practice and embraced by businesses.

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How do inventions become innovations?

Schumpeter argued that companies select existing inventions and use them to create new production methods, thus driving innovation.

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What role do companies play in innovation?

According to Schumpeter, companies actively choose which inventions to implement and introduce into the market, thus driving innovation and economic growth.

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Know About

The type of knowledge that is explicit, easily transferred between individuals and organizations, and codified in documents like manuals.

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Know How

The type of knowledge that is implicit and based on skills and competencies, often difficult to transfer.

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Innovation based on knowledge

The ability to create competitive advantages through using and applying knowledge.

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Value generated by innovation

The difference produced by innovation, providing value to customers or users.

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Change as the way of innovation

The core element of innovation - using new ideas or methods to do things differently.

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Knowledge as the basis of innovation

Knowledge is the foundation of innovation.

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Difficulties in transmitting tacit knowledge

Tacit knowledge is challenging to codify and transmit due to its inherent complexity.

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Explicit Knowledge

Knowledge that can be easily communicated through documents, manuals, or instructions.

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Tacit Knowledge

Knowledge that is difficult to transfer and often comes from personal experience and intuition.

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Risk of Imitation

The ability to easily copy or imitate, making sustainable competitive advantage difficult.

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Bureaucratic Organization

A system of organization characterized by clear hierarchies, specialized roles, and formalized processes.

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Innovative Organization

An organizational structure that is flexible, flat, and focused on generating and implementing new ideas.

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Competitive Advantage of Tacit Knowledge

A type of knowledge that is difficult to copy or imitate due to its personalized nature and reliance on experience.

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Knowledge as Basis for Innovation

A process of using existing knowledge to create something new or improve upon it.

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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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