The rights of copyright protection are established by legitimate use of the work.
In general, the more firms competing that are of comparable size, the more competitive
the industry will be.
Firms should always be racing to launch their products as early as possible.
In the forming of virtual teams, it is important to select personnel who have strong
interpersonal skills.
Tacit knowledge is knowledge that can be documented in written form.
If an inventor received a utility patent in the United States in June 2004, then his or her
patent would be valid as of the same date in member countries of the Paris Convention,
if he or she applies for protection in those countries within 12 months.
The path a technology follows through time is termed its technology transfer.
Viral marketing is based on the fact that people are more receptive to, or have greater
faith in, information that comes through personal contacts.
Some collaboration agreements include provisions for periodic auditing either by the
partner organizations or a third party.
Calculating the internal rate of return of a project typically must be done by trial and
error.
Externalities are costs that are borne by individuals other than those responsible for
creating them.
The allocation of a finite quantity of resources over different possible uses is known as
research rationing.
Virtual teams are best suited for exchanging tacit knowledge.
In industries characterized by increasing returns, the rate of return from a product or
process increases with the size of its installed base.
A modular innovation significantly affects the overall configuration of a system.
Which of the following is a disadvantage of using the Internet for advertising over other
media?
a. Relatively high cost
b. Low audience selectivity
c. Lack of interactive possibilities
d. High clutter
Marine Systems was the first company to develop inventory management software
specifically for hotels and restaurants. Soon after Marine Sytems had launched its
product, Unicorn Systems developed similar software. The software developed by
Unicorn Systems outperformed the one developed Marine Systems, and it eventually
became the market leader. Unicorn Systems is an example of a(n) _____.
a. pioneer
b. late mover
c. early follower
d. laggard
_____ are individuals or organizations that transfer information from one domain to
another in which it can be usefully applied.
a. Knowledge brokers
b. Knowledge workers
c. Complementors
d. Category captains
Which of the following is true of quantitative methods of analyzing new projects,
particularly in rapidly changing environments?
a. They enable managers to statistically compare projects.
b. Their accuracy is unquestionable.
c. Discounted cash flow methods and real options are the least recommended
quantitative methods.
d. They are particularly accurate in highly uncertain or rapidly changing environments.
Which of the following is an example of applied research?
a. A study on Abraham Maslow’s hierarchy of needs theory
b. A study on the acidic nature of phenols
c. A study on the ways to increase employee retention in the software industry
d. A study on the structure of neutrons, electrons, and protons
NetTech Inc. is a software manufacturing firm. Since it lacks advertising and marketing
capabilities, the firm collaborates with Matrix Advertisers Inc. to improve its marketing
efforts. This collaboration is based on the combination of _____.
a. supplementary stocks of resources
b. primary resources
c. complementary resources
d. secondary resources
Ron is highly skeptical about new ideas and products. He has not yet bought a satellite
dish for his home because he is still unsure that it really works. Ron is also very worried
about the expense of purchasing the satellite dish. According to this description, Ron:
a. is an innovator.
b. belongs to the early majority.
c. is a laggard.
d. is an early adopter.
Which of the following statements is true of Porter’s five-force model?
a. It states that the attractiveness of an industry is unaffected by the industry’s degree of
rivalry.
b. It fails to acknowledge the role of substitutes.
c. It is often used, in practice, to assess a specific firm’s external environment.
d. It emphasizes the stakeholder management issues that are likely to impact the firm’s
financial performance.
Andrew is a gifted musician, with an instinctive knack for composing tunes that catch
the public’s imagination. The means by which he has does this is unclear and cannot be
defined. This makes him a _____ resource.
a. socially complex
b. causally ambiguous
c. logistically outbound
d. logistically inbound
Many people dream of opening their own restaurant someday and restaurant supply
houses provide easy finance options for equipment purchases. Also, a high growth is
projected for the restaurant industry sector. According to Porter’s five-force model, this
is one of the reasons why the _____ in this industry is so high.
a. failure rate
b. exit barrier
c. threat of potential entrants
d. technological breakthrough
According to Schoonhoven and Jelinek, quasiformal structures are:
a. slow to respond to the need for changes.
b. useful in fostering interactions based on hierarchy.
c. less problem-focused than rest of the company.
d. not a part of the formal reporting structure.
Which of the following measures assesses the ratio of the firm’s total profits from new
products to its total expenditures?
a. Return on innovation
b. Average cycle time of the innovation
c. Percent of development projects meeting deadlines
d. Percent of development projects within the estimated budget
Which of the following is true of using marketing to shape perceptions and
expectations?
a. Preannouncements reduce excitement about a product before its release.
b. A firm that aggressively promotes its products loses its actual installed base and its
perceived installed base.
c. A firm should avoid use of vaporware if other vendors beat the firm to market and the
firm fears that customers may select a dominant design.
d. A firm can signal its commitment to an industry by making substantial investments
that would be difficult to reverse.
_____ are regional groups of firms that have a connection to a common technology, and
may engage in buyer, supplier, and complementor relationships, as well as research
collaboration.
a. Technology transfer offices
b. Regional incubators
c. Strategic business units
d. Technology clusters
Which of the following is an advantage of making a new generation of technology
backward compatible?
a. Consumers will have to buy completely new complements.
b. Consumer switching costs may be lower because they anticipate using their existing
complements.
c. It allows a firm to reap the benefits of cannibalization.
d. It is typically less expensive to make a new generation of technology backward
compatible than to make it incompatible.
If a country’s GDP stands at 4,867 billion USD, it means the country’s ____ is worth
4,867 billion USD.
a. total annual output
b. investment on technological innovation
c. savings with the World Bank
d. negative variance in budget
The innovation process at Jupiter Inc. starts with the generation of raw ideas, followed
by development of small projects, which later become major developments, and the
process finally ends with product launches. According to the concept of “innovation
funnel”, the wide end of the funnel is occupied by:
a. raw ideas generated.
b. product launches.
c. major developments.
d. small projects.
If a business builds a park in a community, it creates a(n) _____ for community
members.
a. social cost
b. positive externality
c. opportunity cost
d. negative variance
In the context of FMEA, which of the following formulas is used to calculate the risk
priority number?
a. Risk priority number = total profits from new products/ total expenditures
b. Risk priority number = total profits from new products – total expenditures
c. Risk priority number = successful projects/ total project portfolio
d. Risk priority number = severity X likelihood of occurrence X inability of controls to
detect
Greyer Co. has developed a special chemical to kill cancer cells. While the scientists at
Greyer have the knowledge, they are short on equipment, money, and marketing
know-how. Greyer should:
a. give up the idea altogether.
b. find a partner to collaborate with.
c. forge forward and develop the technology on its own.
d. come up with a new concept in which it can possess all the necessary capabilities.
When each partner contributes capital and owns a specified right to a percentage of the
proceeds from the alliance, the collaborative relationship is referred to as _____.
a. equity ownership
b. relational governance
c. alliance contracts
d. solo internal development
Albert has designed a license plate holder for automobiles that makes theft of the
license plate practically impossible. He has limited income and feels that he needs to
protect his patent in numerous countries so that he can sell his product there in the
future. Discuss how Albert can accomplish this.
Why is it important that a company have a well-defined process for strategically
managing its new product development process?