Lecture 7: Developing An innovation stratrgy

Question 1

Advantages and disadvantages of being First To Market

Answer 1

A:

• reputation as pioneer
• market share
• definition of standards
• monopoly profits

D:

• pioneering costs (educating buyers, regulatory approval)
• uncertainty of demand
• changing buyer needs

Question 2

Which FOUR factors influence a firms ability to develop and create value through innovation?

Answer 2

1) national system of innovation
2) it’s power and market position within the international value chain
3) capability and processes of the firm
4) exploit and identify external sources of information

Question 3

Factors affecting the precise process:

Answer 3

Sector
Markets
Technology

Question 4

Why do you need an innovation strategy?

Answer 4

• to develop firm-specific knowledge and capacity to exploit it
• cope with environmental complexity and uncertainty
• create organizational structures and processes to manage trade offs