22 Questions
What is the main difference between invention and innovation?
Invention is about producing a prototype, while innovation is about commercializing an idea.
Why did the perception of small firms change in the 00s regarding their role in innovation?
The dominant view shifted as technology became a significant part of the economy.
What does diffusion refer to in the context of innovation?
The impact an innovation has on the market once it is introduced.
Which type of innovation involves making radical changes in products or processes?
Radical innovation
What characterized the dominant view on firm size and innovation in the 70s?
Only large firms were regarded as important innovators.
What role did small new companies play in job creation towards the end of the 70s?
They provided most jobs compared to large companies.
What is one of the challenges in the corporate model regarding innovation?
Difficulty in aligning incentives between the principle and agent
How does the principle-agent problem manifest in big firms during innovation projects?
Principles struggle to observe the actions taken by agents, especially during early stages
What is a characteristic feature of entrepreneurial firms in terms of incentives between principle and agent?
Aligned incentives between principle and agent
What is a significant consequence for entrepreneurs seeking funding from venture capitalists (VCs)?
Loss of control through sales of shares
What do VCs typically provide to entrepreneurs beyond just money?
Legitimacy, ideas, thoughts, consulting, and network
Why does the agent-principle issue resurface with VCs owning a significant share of a firm?
Increased bureaucracy and control in the organization
What are the components of the knowledge production function as discussed in the text?
Technological knowledge and past research
Why is measuring technological change/innovation considered a problematic issue according to the text?
Every method used has its pros and cons
What is an argument in favor of large firms being more innovative as discussed in the text?
Economies of scope
In what context do small firms find it hard to break into the market according to the text?
Industry with deep knowledge requirements
What characteristics differentiate start-ups from other types of firms?
Growth orientation from the start
How do smaller firms gain an advantage in bringing innovations to market according to the text?
Ability to have first-mover advantages
What organizational properties are needed during the early stages of the innovation process according to the text?
Creativity, openness, entrepreneurship, and flexibility
'Paradox of creativity and control' refers to the balance needed between what two aspects according to the text?
'Creativity' and 'structure'
'Heterogeneity in small business' is characterized by which of the following according to the text?
'Informal structure' and 'flexibility'
What is one issue raised with using patents as a measure of technological change/innovation?
Many products and services don't use patents
Explore how the dominant view on firm size and innovation has evolved over time, from the notion that only large companies are important for innovation to recognizing the potential of small firms in bringing positivity to the economy. Dive into the changes in perspectives towards small firms' efficiency and innovation.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
