Solo internal development is, on average, a relatively fast way of developing a
technology.
Knowledge that is explicit requires more frequent and close interaction to be
meaningfully exchanged than knowledge that is tacit.
Late entrants typically bear the bulk of research and development expenses.
The use of executive sponsors reduces the effectiveness of the development process.
The ratio of R&D expenditures to sales is known as R&D concentration.
According to Porter’s five-force model, the threat of potential entrants is influenced by
the height of entry barriers.
The influence of a dominant design can extend beyond its own technology cycle.
Lightweight teams are appropriate for derivative projects.
Proximity and frequent interaction help teams to develop shared norms and a dialect for
communicating about a project.
If entry barriers are high, entering a market early becomes necessary.
Virtual teams face challenges in developing trust among its team members.
A firm’s emphasis on a scientific discipline that is central to its core competency can
make the firm less attractive to individuals from other disciplines.
S-curves in technology performance and s-curves in technology diffusion are
fundamentally different processes.
Product innovations are more visible than process innovations.
Knowledge that cannot be readily codified is called explicit knowledge.
The Solow Residual refers to the:
a. obsolete products left in the market due to the accelerated product life cycle.
b. less developed nations of the world being left behind due to their obsolete
technology.
c. increased amount of output achievable from a given quantity of labor and capital due
to technological innovation.
d. process of dumping goods in developing and underdeveloped countries at a price
lower than the home-market price.
_____ approach to research and development assumed that innovation proceeded
linearly from scientific discovery, to invention, to engineering, then manufacturing
activities, and finally marketing.
a. Demand-pull
b. Market-pull
c. Supply-push
d. Science-push
What is the advantage of using the real options approach of evaluating a project?
a. It results in better technology investment decisions than a cash flow analysis
approach.
b. A firm undertaking solo new product development does not require full investment in
the technology before determining if the technology will be successful.
c. It is cheap to use in case of a firm undertaking solo new product development.
d. It is valuable only when there is no uncertainty.
TechSense, an electronics manufacturing firm, allows its customers to resell old
TechSense products at their retail outlets. The firm reuses the metal, wires, and plastic
-extracted from these old products-in their new products. This way the company has
been able to take waste management to a whole new level. According to the “Buyer
Utility Map,” the firm is applying environmental friendliness utility lever in _____
stage of buyer experience cycle.
a. supplements
b. purchase
c. use
d. disposal
Allured Architecture collaborated with Maze & Matiz to form a new architecture firm
called AllureAmaze Inc. Both the firms had a significant equity stake in the new entity.
This collaboration is an example of _____.
a. licensing
b. a joint venture
c. outsourcing
d. contract manufacturing
Phoenix System’s desktop is almost in its saturation stage and is mostly being adopted
by laggards in the computer market. The company must ensure that its marketing
message:
a. is high on technical content.
b. stresses on simplicity and reliability of the desktop.
c. stresses on the leading-edge nature of the desktop.
d. reaches the audience through an expensive marketing channel.
A DVD manufacturing company is considering involving the suppliers of the electronic
components used in its DVD players/recorders in the concept development and design
of a new version of its products. Research has shown that including suppliers will result
in:
a. bringing products to the market more slowly because getting their input takes time.
b. an increased cost because they must be paid for their contributions.
c. a higher quality of product as their ideas can be incorporated into the design.
d. short-term supplier relations.
A firm choosing to decentralize its R&D by divisions rather than centralizing it will
have a greater possibility of:
a. maximizing economies of scale in R&D.
b. preventing redundant R&D activities from being performed in multiple divisions.
c. benefiting from the learning-curve effects.
d. matching new products to the requirements of the customers served.
Edge Inc. manufactures new, advanced camera cars and tracking vehicles used in
filmmaking. The demand for these products has been really high. However, the firm is
facing a severe lack of resources and is unable to produce the advanced camera cars and
tracking vehicles in sufficient volume. To ensure that the rate of adoption is not
adversely affected, the company should:
a. protect the technology.
b. invest more on advertisement.
c. diffuse the technology.
d. develop complementary goods.
The time elapsed from project initiation to product launch, usually measured in months
or years is referred to as _____.
a. diffusion of innovation time
b. technology trajectory
c. development cycle time
d. the Six Sigma period