week 1

Question 1

technological innovation

Answer 1

the act of introducing a new device, method, or material for application to commercial or practical objectives. it is considered the most important driver of competitive success. it is the creation of new knowledge that is applied to practical problems. it entails new product or service development, but also the more profound idea generation to market launch.

Question 2

computer-aided design and manufacturing

Answer 2

have made it easier and faster for firms to design and produce new products.

Question 3

flexible manufacturing technologies

Answer 3

have made shorter production runs economical and reduced the importance of economies of scale. it helps firms develop and produce more product variants that closely meet the needs of narrowly defined customer groups. companies can use a broad portfolio of product models to make sure they penetrate nearly every conceivable market niche. it enables firms to transition from producing one model to the next, adjusting production schedules with real-time information on demand.

Question 4

product life cycle

Answer 4

the time between a product’s introduction and its withdrawal from the market.

Question 5

innovation

Answer 5

enables a wider range of goods and services to be delivered worldwide.

Question 6

Gross Domestic Product (GDP)

Answer 6

the total annual output of an economy as measured by its final purchase price.

Question 7

externalities

Answer 7

costs (or benefits) that are borne (or reaped) by individuals other than those responsible for creating them. eg., pollutants (negative) or a new park (spillover).

Question 8

innovation funnel

Answer 8

the innovation process with many potential new product ideas going in the wide end, but very few making it through the development process. most ideas do not become successful new products because they are not technically feasible or fail to earn a commercial return.