Lecture 1: Course Introduction

Question 1

What is the importance of innovation for organizations?

Answer 1

1. Growth, Success, …
2. Growing importance of ongoing megatrends (Globalization, Digitalization, …)
3. Important for high-income industries

Question 2

Definition: Capitalism?

Answer 2

= Capitalism is a form or method of economic change and is never stationary

Question 3

Fundamental impulses that keep capitalism going?

Answer 3

= comes from the new consumer’s goods, new methods of production or transportation, new markets, new forms of industrial organization

Question 4

Creative Destruction

Answer 4

= essential fact about capitalism

= process of industrial mutation thet revolutionize the econmic structure from within, destroying the old one

Question 5

Def: Innovation

Answer 5

= The successful implementation of creative ideas within an organization

Question 6

Def. Invention

Answer 6

= Manifestation of a creative idea in a unique product, method, process
=However: irrespective of its implementation or success

Question 7

Definition Creativity?

Answer 7

= The production of a novel and useful idea
= Creativity is necessary condition for innovation (but not sufficient)

Question 8

2 degrees of innovation

Answer 8

Incremental innovation
= do what we do but better

Radical Innovation
= do something different

Question 9

Consequences of innovation?

Answer 9

Disruptive innovation
= Disturbing prevailing consumer habits and behaviors in a major way
= And/Or undermining the competence and assets on which existing competitors have built their success

Question 10

The subject of innovation (4 P’s)

Answer 10

1. Product
   = What we offer
2. Process
   = How we create and deliver the offering
3. Position
   = Where we target the offering
4. Paradigm
   = How we frame what we do

Question 11

Perspectives of innovation

Answer 11

= Innovation as a multi-faced construct

1. Strategy: technology licensing, innovation portfolio
2. Economics: institutions and regulations
3. Engineering: technical development of new products
4. Marketing: market launch of new product

Question 12

The people side of innovation

Answer 12

= Innovations are made by people. so firstly the most appropriate employees have to be identified and assigned to innovative tasks

Question 13

Components of creative performance

Answer 13

1. Creativity-relevant skills
   - Cognitive style
   - Divergent thinking ability
2. Domain relevant skills
   - Domain-specific talent
   - Expertise & Knowledge
   - Technical skills
3. Motivation
   - Attitudes towards the task
   - Goal commitment
4. work environment