5.6 Flashcards
1
Q
Research and development
A
The scientific research and technical development of new products and processes
2
Q
Pros and cons of Research and Development
A
3
Q
Types of innovation
A
Product innovation
- Enhancements in product (or new ones)
- Meet unmet needs
Process innovation
- Enhancements in manufacturing or in delivering the product
Positioning Innovation
- Changing consumers’ perceptions of a product
- Relate to PPM
Paradigm Innovation
- A distinctive change in the what the business market does or the product in offers
4
Q
The difference between adaptive creativity and innovative creativity
A
Adaptive creativity
- Adapting something that exists
Innovative creativity
- Creating something new
5
Q
Factors that may influence research and development
A
- Nature of the industry
- Organisational culture
- E.g. short vs long-termism
- Access to finance
6
Q
Why R & D is important
A
- Advantage over competitors
- Meet consumers’ unmet needs
- Customer loyalty
- Higher prices (less price sensitivity)
- Creates property rights
- Lower costs of production
