Week 9+10

Question 1

3 types of entry

Answer 1

First movers
Early followers
Late entrants

Question 2

First mover advantages (3)

Answer 2

• Advantages dominant design
• Brand loyalty
• Pre-empting scarce resources
• Exploiting buyer switching costs

Question 3

First mover disadvantages (3)

Answer 3

• R&D expenses
• Undeveloped channels
• Lack of enabling tech
• Lack of complementary goods
• Uncertain customer requirements

Question 4

Lack of enabling technology

Answer 4

Society doesn’t have technological capacity to build

Question 5

Lack complementary goods

Answer 5

Lack products in place to give product value, not required however

Question 6

5 technological innovations and key resource

Answer 6

1. industrial revolution (water)
2. Age of steam and railways (steam)
3. Electricity and steel
4. Age of mass production (oil+automobiles)
5. Information (internet)

Question 7

Causes of technological revolution

Answer 7

• Clusters of interrelated innovations
• Some industries lead the way
• Some countries lead the way

Question 8

Core inputs

Answer 8

Inputs for economic activity throughout the economy

Question 9

GPT’s link to core inputs

Answer 9

Core inputs lead to GPT’s spreading widely leading to cascade of innovation. This provides incentive to improve GPT

Question 10

4 phases of technological revolution
IIDE

Answer 10

1. Incubation
2. Installation
3. Deployment
4. Exhaustion