Theories and concepts

Question 1

The central argument that all definitions of innovation have in common

Answer 1

The need to complete the development and exploitation aspects of new knowledge, not just its invention

Question 2

The book’s definition of innovation

Answer 2

“The process of turning ideas into reality and capture value from them” (Tidd & Bessant)

Question 3

Dimensions of the ‘innovation space’ (the 4 p’s)

Answer 3

product – changes in the things (products/services) which an organization offers
process – changes in the ways in which they are created and delivered
position – changes in the context in which the products/services are introduced
paradigm – changes in the underlying mental & business models which frame what the organization does

Question 4

Describe Radical innovation

Answer 4

A radical or disruptive innovation is an innovation that has a significant impact on a market and on the economic activity of firms in that market.

The innovation could, for example, change the structure of the market or create new markets

Question 5

Describe Incremental innovation

Answer 5

Incremental innovation concerns an existing product, service, process, organization or method whose performance has been significantly enhanced or upgraded.

Question 6

Define the stages - and its’ characteristics of Abernathy and Utterback’s model of innovation life cycle

Answer 6

Stage 1 - Fluid: exploration, uncertainty, flexibility (high emphasis on product innovation)
Stage 2 - Transitional: dominant design (high emphasis on process innovation)
Stage 3 - Specific: standardization, integration (emphasis on both product and process innovation)

Question 7

Define the most central dynamics behind globalization of innovation

Answer 7

Open innovation, digitalization of processes and systems, advances in IT

Question 8

Explain globalization of innovation

Answer 8

Globalization of innovation is about creating interfaces with specialized skills and innovative opportunities at a world level, as a result of open innovation, digitalization, and advances in IT

Question 9

Name the 5 innovation mechanisms that create strategic advantages

Answer 9

1. Novelty in product or service offering
2. Novelty in process
3. Complexity
4. Legal protection (licenses, intellectual property)
5. Timing

Question 10

Name the Generic phases of the innovation process (innovation as a core business process)

Answer 10

1. Searching and scanning (internal and external environments)
2. Filtering and selecting potential opportunities
3. Implementing development & commercialization
4. Reviewing & learning from experience. Capturing the benefits.

Question 11

What is the purpose of creating a Business Model Canvas?

Answer 11

It describes how an organization creates, delivers, and captures value.

Question 12

Describe what exploration and exploitation entails

Answer 12

Exploration: Smaller and newer organizations rely on exploration, which involves risk-taking, experimentation, discovery, and innovation.

Exploitation: Larger companies rely on exploitation, where innovation emerges on the existing assets of the organization and improves them through innovation.

Question 13

Provide the book’s example of exploration vs. exploitation

Answer 13

Tesla’s exploration of electric vehicles vs. the car industry’s reliance on exploitation of existing resources and capabilities

Question 14

Define organizational routines

Answer 14

Organizational routines are considered basic components of organizational behaviour and repositories of organizational capabilities. Routines become the organization’s “personality”, as they consist of the learned processes and behaviours which determine how the organization operates

Question 15

Define tacit knowledge

Answer 15

The intelligence we have that is gained through the personal and professional experience you’ve learned both in your current role and previous jobs. It’s the knowledge that’s difficult to explain and challenging to document

Question 16

Name the 4 types of firms in terms of developing an innovation strategy

Answer 16

Type A: Unaware/passive
Type B: Reactive
Type C: Strategic
Type D: Creative

Question 17

Name 3 advantages - and 3 disadvantages of being a first mover

Answer 17

Advantages: 
•	Reputation as a pioneer
•	Capture market share
•	Early learning curve benefits
•	Definition of standards
•	Establish entry barriers e.g. patents
•	Dominate supply & distribution chains
•	Earn ‘monopoly’ profits (think of Schumpeter)

Disadvantages:
•	Pioneering costs, educating buyers, regulatory approval
•	Demand uncertainty
•	Changing buyer needs
•	Low-cost imitation
•	Followers of technology

Question 18

Name the stages of New Product Development projects (NPD-projects)

Answer 18

1. Idea formulation
2. Concept formulation
3. Product development
4. Test marketing

Question 19

Define single-loop - and double-loop learning

Answer 19

Single loop learning (Argyris & Schon, 1974,1978): Learning from the loop between results & consequences (what we obtain) and action strategies and techniques (what we do). It is a problem-solving learning style

Double loop learning (Argyris & Schon, 1974,1978): Learning, learning is from the loop between results & consequences (what we obtain) and action strategies & techniques (what we do), but also governing variables, such as goals, values, beliefs (why we do what we do)

Question 20

What is Ambidexterity?

Answer 20

The ability to do two different things at the same time; for example, exploitation and exploration.

Question 21

What is Structural ambidexterity?

Answer 21

It allows organisations to separate their exploration units from their exploitation units, enabling them to have different processes, structures, and cultures.

Question 22

What is a ‘competence trap’?

Answer 22

When a company is too heavily focused on exploitation and makes continuous incremental changes (improvements) with the purpose of being more effective. This may lead the company to a trap that does not allow the company to do exploration

Question 23

What is a ‘failure trap’?

Answer 23

When a company is always doing radical changes (new things) with the purpose of running faster than competitors

Question 24

What is meant by the ‘Perpetual search trap’?

Answer 24

Relating to discovering something new, but the organization does not have the patience or persistence to build on the new discovery or idea.

Question 25

What is meant by the ‘Success trap’?

Answer 25

Related to ‘doing business as usual’ because the organization is reluctant to innovate itself, as it’s difficult to change.

Question 26

Describe Absorptive capacity

Answer 26

The ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends. This is critical to its innovative capabilities.

Question 27

Name Mintzbergs six structural archetypes

Answer 27

1. Simple structure (centrally controlled but can quickly respond to changes in the environment).
2. Machine bureaucracy (controlled centrally by systems e.g., McDonald’s or Ford).
3. Divisionalized forms (decentralized organic form designed to adapt to local environmental challenges).
4. Professional bureaucracy (power located with individuals but coordination via standards e.g., hospitals).
5. Adhocracy (not always long-lived but offer a high degree of flexibility).
6. Mission-oriented (organization held together by a common purpose).

Question 28

Name the benefits of Innovation networks

Answer 28

Collective efficiency, collective learning, collective risk taking, intersection of different knowledge sets

Question 29

Name the three capabilities/characteristics of innovative organizations

Answer 29

Inclusive leadership, creative climate, and a deliberate innovation process

Question 30

Describe the meaning of Open vs. Closed innovation

Answer 30

Open innovation is innovation that promotes collaboration with people and organizations outside the company. Inflows and outflows of knowledge accelerate the internal innovation and expand the markets for external use of innovation

Closed innovation is innovation where all the intellectual property is developed internally and kept within the company

Question 31

Explain the ‘Contingency approach to leadership’

Answer 31

The contingency theory of leadership supposes that a leader’s effectiveness is contingent on whether or not their leadership style suits a particular situation. According to this theory, an individual can be an effective leader in one circumstance and an ineffective leader in another one

Question 32

What is ‘organizational slack’?

Answer 32

Organizational slack is the difference between resources available & those currently needed (can be either excess or insufficient).
The slack represents a static in-efficiency, but can act as a dynamic shock absorber

Question 33

What is the idea behind ‘team synergy’?

Answer 33

The idea is that the whole is greater than the sum of its parts and applies it to teamwork

Question 34

Explain Schein’s culture framework (organizational culture pyramid)

Answer 34

Top of the pyramid: Artifacts (visible, but often not decipherable)
Middle of the period: Values (greater level of awareness)
Bottom of the period: Underlying basic assumptions (taken for granted, invisible and pre-conscious)

Question 35

Name the 4 main personality types according to Myers-Brigg´s Type Indicators

Answer 35

• The thoughtful realist
• The thoughtful innovator
• The action-oriented realist
• The action-oriented innovator

Question 36

Explain the difference behind a group vs. a team

Answer 36

Group = a collection of individuals who draw a boundary around themselves, or people from the outside might draw a boundary around them, and thus define them as a group

Team = has a common purpose, is generally tighter and clearer about what it is and what its raison d’être is. Its members know exactly who is involved and what their goal is

Question 37

What is ‘social innovation’?

Answer 37

Social innovation refers to the design and implementation of new solutions that imply conceptual, process, product, or organisational change, which ultimately aim to improve the welfare and wellbeing of individuals and communities

Question 38

Name some of the things that innovation for sustainability can achieve

Answer 38

Cleaner products, more efficient processes, alternative technologies, new services, systems innovation

Question 39

Explain the difference between data, information, and knowledge

Answer 39

Data = discrete raw observations, numbers, words, records etc. 
Information = data that has been organized, grouped or categorized into some pattern 
Knowledge = information that has been contextualized, given meaning and therefore made relevant and operational.

Question 40

Name the 4 types of Intellectual Property Rights (IPR)

Answer 40

Patents:
Copyright
Design rights/registration
Trademarks (and names)