Technological change Flashcards
1
Q
Definition of invention?
A
the creation of new products, processes and technologies
2
Q
Definition of innovation?
A
transformation of creative ideas into useful applications
3
Q
What is product innovation?
A
small scale and frequent subtle changes to the characteristics and performance of a good or a service
4
Q
What is process innovation?
A
- changes to the way in which production takes place or is organised
5
Q
Who came up with creative destruction?
A
- Joseph Schumpeter
6
Q
What is creative destruction?
A
refers to dynamic effects of innovation and can lead to dynamic effeciency in a market
7
Q
Explain creative destruction in market?
A
- fuctions of SIR will mean that new inventors or innovators will naturally rise up to disrupt the monopoly power
8
Q
Product innovation advantages?
A
- can charge higher prices
- added value
- opportunity to build early customer loyalty
- public relations
- increased market share
9
Q
Process innovation advantages?
A
- reduced costs
- improved quality
- more responsive customer service
- greater flexibility
10
Q
What is a pure play?
A
a business that originated and does purely business purely through the internet, no physical store
