Module 2/3

Question 1

What enables the startup headstart?

Answer 1

Technology/knowledge/network advantage

Market advantage

Question 2

What is the key driver of economic performance and growth of small firms?

Answer 2

Product innovation

Question 3

What do small firms often rely on?

Answer 3

comprise a combination of effectuation logic in

early stages of innovation development,

Question 4

What is effectuation

Answer 4

Taking a set of means as given and focusing on what can be created with them.

Question 5

Guided by effectual logic start ups innovation efforts tend to be…

Answer 5

resource-driven, stepwise, and open-ended

Question 6

What are common problems of startups?

Answer 6

Lack of resources and networks
Lack of organizational history/experience with stable routines
Lack legitimacy and credibility

Question 7

Sources of ideas and opportunities

Answer 7

• Resource capital, Assets, Human capital
• Social capital and embeddedness in local and innovation context
• Local technical, social, and user environment
• Prior work experience, prior failure-experience
• Creativity and personality traits (self-efficacy, tolerance for ambiguity, experimental attitude)

Question 8

What does the market opportunity consist of?

Answer 8

status quo, problem, what new things can be brought in, how can it be done differently, what different inputs will we require, who can be our initial customer base.

Question 9

Value chain perspective

Answer 9

• what are the nature of upstream-downstream linkages in the industry?

Question 10

Red Oceans

Answer 10

• Represent all known market spaces
• Industry boundaries are well defined and understood by competitors
• For example, cellular phones, PC’s, Brick and Mortar banking, etc

Question 11

Blue Oceans

Answer 11

• Blue oceans represent markets and industries that do not exist yet
• In these markets demand is created
• Sometimes two industries could come together to create a blue ocean
• For example, ebay in secondary markets
• Break away from value/cost trade-offs

Question 12

Patents

Answer 12

• Rights to exclude others
• Protects an invention and costly to obtain and maintain
• High enforcment costs

Question 13

Trade secrets:

Answer 13

• Right to make, use, and sell secret, but also protect against misues
• Secret, proprietary information – maintain
• High enforcement costs

Question 14

Trademarks

Answer 14

• Forbids against misues of brand
• Portects goodwill- maintain
• Moderate enforcement costs

Question 15

Copyrights

Answer 15

• Right to reproduce, distribute, and use for further work
• Protects ideas and artwork – not costly to maintain
• Costly to enforce

Question 16

Appropriability Regimes

Answer 16

The ability of an innovator to appropriate some of the social gains that result from an innovation.

Appropriability regime determines the extent to which
knowledge and innovations can be protected from imitation

Question 17

What resource constraints imply?

Answer 17

seek efficiency and
minimum loss; sequential
rationality

Question 18

Which are the interdependent components of startup-strategy?

Answer 18

Financial strategy
IP strategy
Product market fit
Digital and marketing strategy
Organization strategy