STRATEGIC MANAGEMENT OF TECHNOLOGICAL INNOVATION (SCHILLING) 7TH ED. |
COMPLETE EXAM REVIEW | 100% VERIFIED QUESTIONS AND ANSWERS | ALL CHAPTERS
| PASS GUARANTEE (2026/2027)
1. According to Schilling, technological innovation is best described as:
A. The invention of a completely new product
B. The application of knowledge to create new products, processes, or
services
C. The purchase of new technology
D. The licensing of patents from other firms
ANSWER B. Schilling defines technological innovation as the application of
knowledge to develop new products, processes, or services that create value.
2. Which of the following best describes a 'process innovation'?
A. A new product introduced to the market
B. An improvement in how a product is manufactured or delivered
C. A new brand identity for an existing product
D. A merger between two technology companies
ANSWER B. Process innovations involve improvements in how products are
manufactured, distributed, or delivered, not the product itself.
3. A 'radical innovation' differs from an 'incremental innovation' in that it:
A. Requires less investment
B. Builds on existing knowledge and capabilities
C. Involves a major departure from existing products or processes
, D. Is always faster to develop
ANSWER C. Radical innovations represent dramatic departures from
existing technologies and often require entirely new knowledge and
capabilities.
4. The term 'competence-enhancing innovation' refers to an innovation that:
A. Makes existing competencies obsolete
B. Builds on and extends existing knowledge and skills
C. Requires hiring entirely new staff
D. Is developed by a competitor
ANSWER B. Competence-enhancing innovations build on existing
knowledge and capabilities, reinforcing rather than displacing them.
5. When a new technology renders the existing skills and assets of
established firms obsolete, this is known as:
A. Competence-enhancing innovation
B. Incremental innovation
C. Competence-destroying innovation
D. Process innovation
ANSWER C. Competence-destroying innovations make the existing
capabilities of established firms obsolete, typically benefiting new entrants.
6. Schilling's concept of the 'innovation value chain' includes which of the
following stages?
A. Idea generation, conversion, and diffusion
B. Research, manufacturing, and distribution
C. Invention, patenting, and licensing
D. Design, testing, and launch
ANSWER A. The innovation value chain encompasses idea generation, the
conversion of ideas into products or processes, and the diffusion of those
innovations.
,7. Which of the following is an example of a 'product innovation'?
A. A new assembly line method
B. A new logistics software for warehouses
C. A smartphone with a built-in projector
D. A revised employee training program
ANSWER C. Product innovations involve new or significantly improved
goods or services offered to customers, such as a smartphone with a novel
feature.
8. According to Schilling, the 'S-curve' of technological improvement suggests
that:
A. Technologies improve at a constant rate
B. Technologies improve rapidly at first, then slowly
C. Technologies initially improve slowly, then rapidly, then slowly again
D. Technologies never plateau
ANSWER C. The S-curve model shows that technologies improve slowly in
early stages, accelerate through the middle phase, then plateau as limits are
approached.
9. A 'dominant design' in an industry refers to:
A. The most expensive product on the market
B. A single architecture that becomes the accepted standard
C. A government-mandated technical specification
D. The product with the most patent protection
ANSWER B. A dominant design is a single product architecture that
becomes the de facto standard for the industry, setting the template for
future developments.
10. According to the technology life cycle, the 'era of ferment' is
characterized by:
A. Stable competition and slow product changes
B. Intense technological competition and design experimentation
C. Market maturity and cost competition
, D. Decline and exit of major firms
ANSWER B. The era of ferment involves intense competition among
multiple technological alternatives, significant design experimentation, and
uncertainty about which design will prevail.
11. Schilling identifies which of the following as a key source of innovation?
A. Only large corporations with R&D departments
B. Individuals, firms, universities, and government labs
C. Exclusively government-funded research
D. Solely foreign technology transfer
ANSWER B. Innovation can emerge from many sources including
individuals, firms, universities, and government laboratories, each
contributing in different ways.
12. The concept of 'user innovation' was primarily developed by:
A. Clayton Christensen
B. Eric von Hippel
C. Michael Porter
D. Joseph Schumpeter
ANSWER B. Eric von Hippel developed the concept of user innovation,
showing that end users often develop important innovations, particularly in
high-need niches.
13. 'Open innovation', as described by Henry Chesbrough, emphasizes:
A. Keeping all R&D activities internal
B. Using external as well as internal ideas and paths to market
C. Acquiring competitors to access their technology
D. Restricting technology to core business activities
ANSWER B. Open innovation involves leveraging external ideas, knowledge,
and pathways alongside internal R&D to accelerate innovation and expand
markets.
COMPLETE EXAM REVIEW | 100% VERIFIED QUESTIONS AND ANSWERS | ALL CHAPTERS
| PASS GUARANTEE (2026/2027)
1. According to Schilling, technological innovation is best described as:
A. The invention of a completely new product
B. The application of knowledge to create new products, processes, or
services
C. The purchase of new technology
D. The licensing of patents from other firms
ANSWER B. Schilling defines technological innovation as the application of
knowledge to develop new products, processes, or services that create value.
2. Which of the following best describes a 'process innovation'?
A. A new product introduced to the market
B. An improvement in how a product is manufactured or delivered
C. A new brand identity for an existing product
D. A merger between two technology companies
ANSWER B. Process innovations involve improvements in how products are
manufactured, distributed, or delivered, not the product itself.
3. A 'radical innovation' differs from an 'incremental innovation' in that it:
A. Requires less investment
B. Builds on existing knowledge and capabilities
C. Involves a major departure from existing products or processes
, D. Is always faster to develop
ANSWER C. Radical innovations represent dramatic departures from
existing technologies and often require entirely new knowledge and
capabilities.
4. The term 'competence-enhancing innovation' refers to an innovation that:
A. Makes existing competencies obsolete
B. Builds on and extends existing knowledge and skills
C. Requires hiring entirely new staff
D. Is developed by a competitor
ANSWER B. Competence-enhancing innovations build on existing
knowledge and capabilities, reinforcing rather than displacing them.
5. When a new technology renders the existing skills and assets of
established firms obsolete, this is known as:
A. Competence-enhancing innovation
B. Incremental innovation
C. Competence-destroying innovation
D. Process innovation
ANSWER C. Competence-destroying innovations make the existing
capabilities of established firms obsolete, typically benefiting new entrants.
6. Schilling's concept of the 'innovation value chain' includes which of the
following stages?
A. Idea generation, conversion, and diffusion
B. Research, manufacturing, and distribution
C. Invention, patenting, and licensing
D. Design, testing, and launch
ANSWER A. The innovation value chain encompasses idea generation, the
conversion of ideas into products or processes, and the diffusion of those
innovations.
,7. Which of the following is an example of a 'product innovation'?
A. A new assembly line method
B. A new logistics software for warehouses
C. A smartphone with a built-in projector
D. A revised employee training program
ANSWER C. Product innovations involve new or significantly improved
goods or services offered to customers, such as a smartphone with a novel
feature.
8. According to Schilling, the 'S-curve' of technological improvement suggests
that:
A. Technologies improve at a constant rate
B. Technologies improve rapidly at first, then slowly
C. Technologies initially improve slowly, then rapidly, then slowly again
D. Technologies never plateau
ANSWER C. The S-curve model shows that technologies improve slowly in
early stages, accelerate through the middle phase, then plateau as limits are
approached.
9. A 'dominant design' in an industry refers to:
A. The most expensive product on the market
B. A single architecture that becomes the accepted standard
C. A government-mandated technical specification
D. The product with the most patent protection
ANSWER B. A dominant design is a single product architecture that
becomes the de facto standard for the industry, setting the template for
future developments.
10. According to the technology life cycle, the 'era of ferment' is
characterized by:
A. Stable competition and slow product changes
B. Intense technological competition and design experimentation
C. Market maturity and cost competition
, D. Decline and exit of major firms
ANSWER B. The era of ferment involves intense competition among
multiple technological alternatives, significant design experimentation, and
uncertainty about which design will prevail.
11. Schilling identifies which of the following as a key source of innovation?
A. Only large corporations with R&D departments
B. Individuals, firms, universities, and government labs
C. Exclusively government-funded research
D. Solely foreign technology transfer
ANSWER B. Innovation can emerge from many sources including
individuals, firms, universities, and government laboratories, each
contributing in different ways.
12. The concept of 'user innovation' was primarily developed by:
A. Clayton Christensen
B. Eric von Hippel
C. Michael Porter
D. Joseph Schumpeter
ANSWER B. Eric von Hippel developed the concept of user innovation,
showing that end users often develop important innovations, particularly in
high-need niches.
13. 'Open innovation', as described by Henry Chesbrough, emphasizes:
A. Keeping all R&D activities internal
B. Using external as well as internal ideas and paths to market
C. Acquiring competitors to access their technology
D. Restricting technology to core business activities
ANSWER B. Open innovation involves leveraging external ideas, knowledge,
and pathways alongside internal R&D to accelerate innovation and expand
markets.
