Building the necessary capabilities and resources in-house reduces a firm’s asset
commitment.
Functional teams typically have a project manager or dedicated liaison personnel.
In the context of s-curves in technological improvement, as a technology begins to
reach its inherent limits, the cost of each marginal improvement decreases.
Busche Copiers has developed and patented a new copy machine. It wishes to penetrate
a wider market but is short on funds. It can use licensing arrangement to accomplish
this goal.
Resources of a tangible nature that can be readily codified are called tacit resources.
As the size of the team increases, the potential for social loafing decreases.
The decline in the government share of spending on R&D is largely due to the rapid
increase in industry R&D funding rather than a real decline in the absolute amount
spent.
If a firm lacks the production capability or expertise to produce a sufficient range of
complementary goods, it should support an open technology strategy and utilize forms
of sponsorship.
Investing in process innovation helps firms lower their costs.
The most common use of conjoint analysis is to assess the relative importance of
different product attributes to customers.
Technological innovation decreases the amount of output achievable from a given
quantity of labor and capital.
It is possible for organizations to have a highly decentralized mechanistic structure.
According to the net present value method of discounted cash flow analysis, the time
required to break even on a project using discounted cash flows is known as period of
return.
Many firms use beta testing to get customer input early in the development process.
The pooling of supplementary resources can enable partners to achieve market power.
If the knowledge underlying a particular technology is tacit, competitors will typically
find it very easy to duplicate.
Three-dimensional printing can generate a model in a few hours.