Chapter 5A (managing innovation and growth)

Question 1

What does innovation lead to?

Answer 1

the genesis of new businesses; mechanism of growth because it creates new products/services

Question 2

On average, what percentage of normal company profits come from new products?

Answer 2

32%

Question 3

What percentage of profits come from new products in innovative companies?

Answer 3

50%

Question 4

What is the best predictor of investment value?

Answer 4

Innovativeness

Question 5

Who did a study on innovativeness?

Answer 5

Cooper

Question 6

What do innovative companies generate?

Answer 6

more money; more job; more profits

Question 7

What is innovation?

Answer 7

The act of introducing novel and useful ideas into value-creating new products, new services, or new processes.

Question 8

What is the criteria in order for something to be innovative?

Answer 8

It must be useful and novel.

Question 9

How does innovation happen?

Answer 9

Combine creative ideas with resources and competencies to create a useful, value-creating new product/service/process and then successfully commercialize it.

Question 10

How many patents did Albert Einstein register?

Answer 10

over 1,000 patents

Question 11

What Albert Einstein an innovator or inventor or both?

Answer 11

both

Question 12

Why was Albert Einstein an innovator?

Answer 12

He invented the light bulb, but then realized that you needed power to plug it in to. He then built an electric distribution and generation infrastructure to power it.

Question 13

Was the Sinclair Research C5 (motorized tricycle) an innovation?

Answer 13

no, it sucked. It was just a stupid invention. That got 15 MPH and was made fun of by people.

Question 14

Was the Segway an innovation?

Answer 14

no, it was expensive, banned from sidewalks in a lot of cities, high observability, looked hard to ride

Question 15

Who was the Segway invented by?

Answer 15

Dean Kamen

Question 16

How many Segways were expected to be sold in the first year of production? How many were actually sold?

Answer 16

50,000-100,000; 6,000 in 18 months

Question 17

What did Dean Kamen do differently with the Segway then with his other medical device inventions?

Answer 17

he made his own company to market it instead of licensing it to bigger companies

Question 18

What was the Segway Ibot?

Answer 18

Another version of the Segway used for wheel-chair bound people. It could climb stairs and stuff.

Question 19

What two types of creativity are there?

Answer 19

organizational, individual

Question 20

What are sources of creativity?

Answer 20

inventor, users, R and D organization, Customers/Supplier/Complementers, University and Government Funded Research, Collaborative Networks

Question 21

What is creativity?

Answer 21

The ability to create work that is useful and novel.