Chapter 2: Sources Of Innovation

Question 0

Define creativity

Answer 0

Creativity is the ability to produce novel and USEFUL work

Question 1

List five potential sources of innovation

Answer 1

• firms
• universities
• government funded research
• private nonprofits
• individuals

Question 2

What are the four types of innovation?

Answer 2

1. Product versus process innovation
2. Radical versus incremental innovation
3. Competence-enhancing versus competence-destroying innovation
4. Architectural versus component innovation

Question 3

Describe product versus process innovations

Answer 3

Product innovations are embodied in the outputs of an organization (goods and services)
Process innovations change the way an organization conducts business. Product innovations can enable process innovations

Question 4

Describe radical versus incremental innovation

Answer 4

Radical refers to the degree to which the innovation is new and different from previously existing products and processes
Incremental innovations involve a minor change to an existing practice
The radicalness is relative (digital photography more radical for Kodak than Sony)

Question 5

Describe competence-enhancing versus competence-destroying innovation

Answer 5

Competence-enhancing build on the firm’s existing knowledge base
Competence destroying renders a firm’s existing competences obsolete

Question 6

Describe architectural versus component innovation

Answer 6

Component (or modular) innovation entails changes to one or more components of a product system without affecting the overall design (gel in bike seat)
Architectural innovation entails changing the overall design of the system or the way the components interact

Question 7

Basic research versus applied research

Answer 7

Basic research is targeted at increasing scientific knowledge for its own sake. It may or may not have any long term commercial application.
Applied research is targeted at increasing knowledge for a specific application or need.