1. Which of the following is NOT a source of strategic advantage through innovation?

A) Complexity-offering something which others find difficult to master

B) Legal protection of intellectual property-offering something which others cannot do unless they
pay a license or other fee
C) Scale of investment in R&D
D) Novelty in product or service offering-offering something no one else can
2. Innovation can take many forms, all involving a change of some kind. Which of the following is
NOT a form of innovation?
A) Product (or service) innovation-changes in what is offered to the world B) Petroleum innovation
amount spent monthly by a business on its fuel costs
C) Process innovation changes in the way offerings are created and delivered
D) Position innovation changes in the context in which innovations are launched
3. Innovation can take many forms. Running a hospital booking system that reduces patient
waiting time is an example of which kind of innovation?
A) Process
B) Position
C) Product
D) Paradigm
4. Haagen-Dazs ice cream was created to open a new market among adults for what had
traditionally been seen as a children's food. This is an example of position innovation.
True
False
5. Many dimensions of climate have been shown to influence innovation and entrepreneurship.
Which the following is not associated with innovation and entrepreneurship?
A) Time and space Bie genecuting new ideas innovation
B) Challenge and unvolvement in stimulate
C) Complete tross and lack of conflict
D) Support for risk-taking and mustakas
6. Three different aspects interact to promene or constiene encativity and innovation Which of
these is a typical example?
D) Climate and culture
A) Personality and cognitive style
C) Tools and techniques for creativity
B) Prosess of creative prairiem-solving
7. The successful framing of problems or opportunities demands a number of dissiplines. Which
of the following is not desirable?
A) Consider many, varied alternatives
B) Prioritize implementable solutions
C) Craft specific but open probleins statements
D) Ignore limiting or restrictive criteria
8. Venture capitalists assess business plans in different ways. However, which of the following
would not be expected to encourage funding?
A) Personality and experience of the entrepreneurs
B) Market and competitor assessment
C) High-technology product or service
D) Financial projections
9. Which of the following is not one of the main factors influencing the decision where to locate
globally?
A) The importance of external sources of technient and market knowledge, e.g. sources of
technology, suppliers, and customers
B) The quality of the science and technology base
C) The importance and costs of internal transactions, eg. between engineering and production
D) The cost and disruption of relocating key personnel to the chosen site
10. Which of the following is the least comenon method used by firms to learn about competitors
innovations?
A) Licensing
B) Reverse engineering
C) Patent analysis
D) Publications
11. Firms in s may pursue different routes to upgrading through innovation. Which of the
emerging economies may following is not a common pathway?
A) Capability upgrading-improving the range of functions undertaken, or changing the mix of
functions. for example, production versus development or marketing
B) Process upgrading incremental process improvements to adapt to local inputs, reduce costs or
to improve quality
C Competitiveness upgrading-adopting best-practice methods from developed economies
D) Inter-sectoral upgrading moving to different sectors, for example, to those with higher value-
added
12. A strategic goal is to get the right balance between exploitation of existing competencies and
the exploitation and development of new competencies. Which of the following is not a critical
issue in this respect?
A) The breadth and limits of management cognition that influence decision-making
B) The skills and experience of employees and other human capital
C) The internal and external relationships that influence necess to information and knowledge
D) The vision, control and power of senior managers
13. There is no widely accepted definition or method of measurement of competencies. Which of
the following statements is not true?
A) Functional measures might include capabilities in design, development or production.
B) Need to identify the range of disciplines or fields that contribute to a technology.
C) Need to be based on specific strategic technological targets.
D) Need to identify the new competencies that must be developed.
14. The fluid phase of innovation is a common term used to describe catalytic cracking in the oil
industry.
True
"False
15. Which of these innovations would not qualify as a dominant design?
A) The two-wheeled diamond frame bicycle
B) Direct online insurance via the Internet
C) The petrol driven internal combustion engine
D) The 5 string bass guitar
16. Discontinuous innovations always come from outside the fum because of the difficulty of
making them fit with the mainstream. True "False
Which of these is not a widely used search method to acquire new knowledge for innovation?
17. A) Working with suppliers
Visiting trade fairs and exhibitions
C) Partnering with universities
) B D) Talking with a group of friends in the pub
E3 Joining strategie knowledge alliances
18. "Open innovation" involves selling all the intellectual property that a firm possesses to as wide
a market as possible.
True
False
19. "Mass customization" refers to
A) An improved version of Henry Ford's original approttch for car manufacturing
B) An approach that tries to customise products services to specific user needs without incurring
cost
penalties of high variery production
C) A series of innovations in the Catholic church
20. "Absorptive capacity" refers to:
A) Performance measurement of sponges and tissue paper
B) The ability of an organization to recognize, acquire, assimilate and use new knowledge from
external sources
C) The knowledge base of the enterprise, measured in terms of the number of university degrees
of its stuff
21. Which of the following is not the result of knowledge push innovation?
A) Polyethylene plastics
B) Float glass manufacture
C) ARM's chipset for mobile phones
D) Haagen-Dazs ice cream
22. Understanding user needs is only relevant as a source of innovation in consumer product
markets. True False
23. User-led innovation is a marketing technique that involves asking potential users whether they
will adopt an innovation. True *Fase
24. "Need pull" only refers to innovations linked to commercial markets.
True
False
25. "Reverse innovation" refers to
A) A novel approach to project management
B) The condition where innovations developed for a different market (for example, in low income
emerging countries) migrate to an established market where its features are valued
C) A creative thinking technique
26. The likelihood of the development and adoption of alternative technologies depends on the
perceptions of potential users. Which of the following is generally not true?
A) Buyers perceptions of differences between alternative technologies influence adoption. B) The
perceived cost of switching between alternative technologies influences adoption.
C) The perceived rate of technological change influences the adoption.
D) Buyers' perceptions of the total benefits influence adoption.
27. The most effective relationship between developers and users depends on a number of
factors, including the diversity of potential applications and users. Which of the following
statements is not true?
A) When there are few applications and few users, negotiation is desirable.
B) When there are few applications, but many potential users, careful segmentation is necessary.
C) When there are many applientions, but few users, customization is possible.
D) When there are many applications and many users, multiple offerings must be developed.