chapter 2

Question 1

innovation

Answer 1

the practical implementation of an idea into a new device or process.

Question 2

idea

Answer 2

something imagined or pictured in the mind.

Question 3

creativity

Answer 3

the ability to produce novel and useful work.

Question 4

novel

Answer 4

the degree to which a product is novel is a function of how different it is from prior work and of the audience’s prior experiences.

Question 5

reinvention

Answer 5

when a product is novel to the person who made it but known to almost everyone else.

Question 6

knowledge

Answer 6

too little knowledge results in no contribution, too much in becoming trapped in existing logic and paradigms.

Question 7

thinking style

Answer 7

a person who can discriminate between important and unimportant problems.

Question 8

creativity of an organisation

Answer 8

the combination of several factors, such as individual creativity, social processes, and contextual factors.

Question 9

Intranet

Answer 9

a private network, accessible only to authorised individuals. it is like the internet but operates only within an organisation. there, employees can submit their ideas and actively interact and collaborate with the ideas of others.

Question 10

idea collection systems

Answer 10

eg. suggestion boxes. relatively easy and inexpensive to implement, however that is only a first step in maximising employee creativity.

Question 11

creative training programs

Answer 11

encourage managers to develop verbal and nonverbal clues that signal employees their thinking and autonomy are respected. these cues shape the culture of the firm and are often more effective than monetary rewards. they also often incorporate exercises that encourage employees to use creative mechanisms such as developing alternative scenarios.

Question 12

user innovations

Answer 12

can blossom into new industries. users often have a deep understanding of their unmet needs and the incentive to find ways to fulfull them. this part can be improved in innovation: users may alter the features of existing products, approach existing manufacturers with product design suggestions, or develop new products themselves.

Question 13

basic research

Answer 13

research targeted at increasing scientific knowledge for its own sake. it may or may not have a long-term commercial application.

Question 14

applied research

Answer 14

research targeted at increasing knowledge for a specific application or need.

Question 15

development

Answer 15

includes activities that apply knowledge to produce useful devices, materials, or processes. therefore, R&D indicates the path from early exploration to commercial applications.

Question 16

research and development (R&D)

Answer 16

refers to a range of activities that extend from early exploration of a domain to specific commercial implementations. firms consider their in-house R&D department to be the most important source of innovation.

Question 17

Science-Push

Answer 17

1950s-1960s. it was assumed that innovation proceeded linearly from scientific discovery, to invention, to engineering, then manufacturing activities, and finally marketing.

Question 18

Demand-Pull

Answer 18

1965. there was a need from the demand side of the market where there were customer suggestions by potential users. this was manufactured and commercialised.

Question 19

Current research

Answer 19

firms are successful innovators; they have in-house R&D, links to customers and external networks and sources of information. they make use of multiple sources.

Question 20

collaboration

Answer 20

might occur in the form of alliances, participation in research consortia, licensing arrangements, contract research, and development, and other criteria.

Question 21

complementors

Answer 21

producers of complementary goods or services. in some situations rivals engage in collaborative development in a product category or complementary product categories.

Question 22

alliances

Answer 22

often formed with customers, suppliers, competitors, and complementors to jointly work on an innovation project or to exchange information and other resources in pursuit of innovation.

Question 23

absorptive capacity

Answer 23

the ability of an organisation to recognise, assimilate, and utilise new knowledge. in-house R&D helps to build absorptive capacity.

Question 24

technology transfer offices

Answer 24

offices designed to facilitate the transfer of technology developed in a research environment where it can be commercially applied. many universities have established these to increase the degree to which university research leads to commercial innovation.

Question 25

science parks

Answer 25

regional districts, typically set up by government, to foster R&D collaboration between government, universities, and private firms.

Question 26

incubators

Answer 26

institutions designed to nurture the development of new businesses that otherwise lack access to adequate funding or advice.

Question 27

private non-profit organisations

Answer 27

perform their own R&D activities. some fund the activities of others and do not do it themselves, some do both. eg. non-profit hospitals and private foundations.

Question 28

technology clusters

Answer 28

regional clusters of firms that have a connection to a common technology, and may engage in buyer, supplier, and complement relationships, as well as research collaboration. they benefit the exchange of knowledge. information is spread faster, easier, and cheaper but will not always transfer readily. proximity and interaction can influence firms’ ability and willingness to exchange knowledge.

Question 29

tacit knowledge

Answer 29

knowledge that cannot be readily codified (documented in written form).

Question 30

complex knowledge

Answer 30

knowledge that has many underlying components, or many interdependencies between those components or both.

Question 31

agglomeration economies

Answer 31

the benefits firms reap by locating in close geographical proximity to each other. firms that are proximate have an advantage in sharing information that can lead to greater innovation productivity. this can in turn lead to other self-reinforcing geographical afvantages; more firms starting up, attracting other firms in the area, and attracting new labour.

Question 32

knowledge brokers

Answer 32

individuals or organisations that transfer information from one domain to another in which it can usefully be applied.

Question 33

nature of technology

Answer 33

its underlying knowledge base or the degree of protection by patents or copyright, degree to which its communication requires close interaction.

Question 34

industry characteristics

Answer 34

market concentration or stage of the industry life cycle, transportation costs, and the availability of supplier and distributor markets.

Question 35

cultural context of the technology

Answer 35

population density of labour or customers, infrastructure development, or national differences in the technology funds and protection.

Question 36

technology spill-over

Answer 36

a positive externality from R&D resulting from the spread of knowledge across organisational or regional boundaries. this leads to better protection mechanisms, mobile labour forces, and more access to knowledge.