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Chapter 01
Introduction
True/False
1. The globalization of markets and the importance of innovation are independent of one
another.
Answer: False
Difficulty: Easy
Page: 1
2. Flexible manufacturing technologies have increased the importance of production
economies of scale.
Answer: False
Difficulty: Easy
Page: 1
3. Innovation and new technology have led to longer product life cycles as better quality
products are being produced.
Answer: False
Difficulty: Moderate
Page: 2
4.. The increased pace of innovation has only had a negligible effect on market
segmentation and product obsolescence.
Answer: False
Difficulty: Easy
Page: 2
5. Slow innovation results in diminishing margins and product obsolescence.
Answer: True
Difficulty: Moderate
Page: 2
6. Technological innovation can have a positive impact on our quality of life through
improved goods and services.
Answer: True
Difficulty: Moderate
Page: 4
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7. Technology’s effects on society are always positive.
Answer: False
Difficulty: Easy
Page: 4
8. Technology in its purest form is not knowledge, but rather faith that things will get
better.
Answer: False
Difficulty: Easy
Page: 4
9. Firms that charge headlong into new product development usually have short
development cycles.
Answer: False
Difficulty: Moderate
Page: 4
10. Studies have revealed that innovation is a freewheeling process that is unconstrained
by rules and plans.
Answer: False
Difficulty: Easy
Page: 4
11. The majority of effort and money invested in technological innovation comes from
industrial firms.
Answer: True
Difficulty: Moderate
Page: 4
12. GDP does relate very directly to the amount of goods consumers can purchase.
Answer: True
Difficulty: Easy
Page: 4
13. Practically all innovative ideas become successful products.
Answer: False
Difficulty: Easy
Page: 5
14. If an idea can be shown to be technologically feasible, it is guaranteed to be
commercially successful.
Answer: False
Difficulty: Easy
Page: 5
15. According to the concept of the innovation funnel, one new idea is usually
responsible for several new products.
Answer: False
Difficulty: Moderate
Page: 5
Multiple Choice
16. As a result of the rapid pace of innovation, the time between a product’s introduction
and its withdrawal from the market
a. has become shorter.
b. has become more predictable.
c. has become longer.
d. has not changed at all.
