QUIZ 7
1. The difference between invention and innovation is
- Invention requires an inventor, innovation requires no individual person
- You must innovate before you invent
- Invention is the creation of a new device or process, innovation is its commercialization
- An invention can be patented and hence earn royalties
2. An innovator’s ability to derive profit from an innovation depends primarily upon:
- Factors that prevent would-be competitors from imitating the innovation
- The strength of the patents that protect the innovation
- The innovator’s ability to manufacture and market the innovation
- The innovator’s financial resources
3. An innovator may fail to earn any significant returns from an innovation if:
- The innovation fails to create value for users
- The innovator is unable to appropriate the value the innovation creates
- Both a and b
- Either a or c
4. The personal computer created a huge amount of value for users. The companies
that profited most from the personal computer were:
- The innovators
- The followers
- The suppliers
- None of the above
5. The following industry offers a strong regime of appropriability for innovators
- Financial services
- Processed food products
- Pharmaceuticals
- Handheld mobile devices
6. The intellectual property of a firm comprises:
- Copyright and patents
- Patents, trademarks, copyrights, trade secrets, and goodwill
- The total of its tangible assets
- Patents, trademarks, copyrights, and trade secrets
,7. The main factor that determines the relative effectiveness of the different
instruments used to protect property rights depends on
- The legal system of the country in which the firm resides
- The effectiveness of the firm’s lawyers
- How much competition the firm faces
- The characteristics of the innovation that is being protected
8. The distinction between codifiable and tacit knowledge is important in relation to
property rights protection because
- Both types of knowledge are present in innovations
- Patents must be written clearly and in an accurate way, so that they only contain
codifiable knowledge
- If an innovation is not described and embedded in a written form, it cannot be effectively
protected
- In the absence of legal protection, the extent to which an innovation can be imitated
depends on the ease with which the technology can be comprehended and communicated
9. Lead time refers to
- The period of time during which a firm is the leader of an industry
- The period of time during which a firm has discovered the largest number of innovations
- The time it takes followers to catch up
- None of the above
10.A company may seek to patent an invention even if it has no intentions of
commercializing it. Which of the following is not an important reason for such
strategic planning?
- To block competitors’ opportunities for innovation
- To generate licensing revenue
- To increase the company’s bargaining power when negotiating cross-licensing deals with
other companies
- To increase the reputation of a company’s R&D development
11.An innovation’s complexity impacts
- The ease with which it can be copied
- The resources needed to formalize it and to establish a patent to protect it
- The rate of diffusion of the innovation, and its acceptance by customers
- The probability for a firm to innovate
, 12.If technological breakthroughs increase the feasibility and attractiveness of fuel cells
as a means of propulsion for vehicles, the profits that can be earned from the
developers of the fuel cell technology will be limited by
- The greater environmental attractiveness of battery-powered electric vehicles
- The dependence of fuel cell technology on specialized investments by auto makers in
designing new cars and fuel suppliers in supplying hydrogen refueling facilities
- The likely ineffectiveness of patents relating to fuel cells
- Lack of interest in vehicle owners in fuel cell technology
13.Patents protect innovation better than any mechanism
- A century of evidence shows this is true
- No one can confirm or disprove this statement
- The evidence is mixed
- Evidence shows that in most industries this is not true
14.Which of the following factors does not contribute to the attractiveness of licensing
provides as a means of exploiting an innovation
- The innovating firm possesses most of the complementary resources needed to exploit the
innovation
- Patents are strong
- The potential for the innovation to enhance the performance of existing products has been
clearly demonstrated
- The innovation has potential applications is several different industries
15.Comparing the development of xerography and the jet engines to satellite-based
global positioning (GPS) and MP3 music players illustrates that
- Invention always precedes innovation
- Financial resources are critical to introduce successful innovations
- The innovation cycle has speeded up over time
- Digital technology has fundamentally changed the nature of innovation
16.Cooperation with lead users is a useful tool of innovation management because
- Lead users set the trend for the mass market
- Due to their price insensitivity, lead users tend to be the most profitable customers
- Lead users provide both information feedback and revenues that can assist ongoing
product development
- Because lead users are so discerning, they have a key role in providing both discipline
and incentives
1. The difference between invention and innovation is
- Invention requires an inventor, innovation requires no individual person
- You must innovate before you invent
- Invention is the creation of a new device or process, innovation is its commercialization
- An invention can be patented and hence earn royalties
2. An innovator’s ability to derive profit from an innovation depends primarily upon:
- Factors that prevent would-be competitors from imitating the innovation
- The strength of the patents that protect the innovation
- The innovator’s ability to manufacture and market the innovation
- The innovator’s financial resources
3. An innovator may fail to earn any significant returns from an innovation if:
- The innovation fails to create value for users
- The innovator is unable to appropriate the value the innovation creates
- Both a and b
- Either a or c
4. The personal computer created a huge amount of value for users. The companies
that profited most from the personal computer were:
- The innovators
- The followers
- The suppliers
- None of the above
5. The following industry offers a strong regime of appropriability for innovators
- Financial services
- Processed food products
- Pharmaceuticals
- Handheld mobile devices
6. The intellectual property of a firm comprises:
- Copyright and patents
- Patents, trademarks, copyrights, trade secrets, and goodwill
- The total of its tangible assets
- Patents, trademarks, copyrights, and trade secrets
,7. The main factor that determines the relative effectiveness of the different
instruments used to protect property rights depends on
- The legal system of the country in which the firm resides
- The effectiveness of the firm’s lawyers
- How much competition the firm faces
- The characteristics of the innovation that is being protected
8. The distinction between codifiable and tacit knowledge is important in relation to
property rights protection because
- Both types of knowledge are present in innovations
- Patents must be written clearly and in an accurate way, so that they only contain
codifiable knowledge
- If an innovation is not described and embedded in a written form, it cannot be effectively
protected
- In the absence of legal protection, the extent to which an innovation can be imitated
depends on the ease with which the technology can be comprehended and communicated
9. Lead time refers to
- The period of time during which a firm is the leader of an industry
- The period of time during which a firm has discovered the largest number of innovations
- The time it takes followers to catch up
- None of the above
10.A company may seek to patent an invention even if it has no intentions of
commercializing it. Which of the following is not an important reason for such
strategic planning?
- To block competitors’ opportunities for innovation
- To generate licensing revenue
- To increase the company’s bargaining power when negotiating cross-licensing deals with
other companies
- To increase the reputation of a company’s R&D development
11.An innovation’s complexity impacts
- The ease with which it can be copied
- The resources needed to formalize it and to establish a patent to protect it
- The rate of diffusion of the innovation, and its acceptance by customers
- The probability for a firm to innovate
, 12.If technological breakthroughs increase the feasibility and attractiveness of fuel cells
as a means of propulsion for vehicles, the profits that can be earned from the
developers of the fuel cell technology will be limited by
- The greater environmental attractiveness of battery-powered electric vehicles
- The dependence of fuel cell technology on specialized investments by auto makers in
designing new cars and fuel suppliers in supplying hydrogen refueling facilities
- The likely ineffectiveness of patents relating to fuel cells
- Lack of interest in vehicle owners in fuel cell technology
13.Patents protect innovation better than any mechanism
- A century of evidence shows this is true
- No one can confirm or disprove this statement
- The evidence is mixed
- Evidence shows that in most industries this is not true
14.Which of the following factors does not contribute to the attractiveness of licensing
provides as a means of exploiting an innovation
- The innovating firm possesses most of the complementary resources needed to exploit the
innovation
- Patents are strong
- The potential for the innovation to enhance the performance of existing products has been
clearly demonstrated
- The innovation has potential applications is several different industries
15.Comparing the development of xerography and the jet engines to satellite-based
global positioning (GPS) and MP3 music players illustrates that
- Invention always precedes innovation
- Financial resources are critical to introduce successful innovations
- The innovation cycle has speeded up over time
- Digital technology has fundamentally changed the nature of innovation
16.Cooperation with lead users is a useful tool of innovation management because
- Lead users set the trend for the mass market
- Due to their price insensitivity, lead users tend to be the most profitable customers
- Lead users provide both information feedback and revenues that can assist ongoing
product development
- Because lead users are so discerning, they have a key role in providing both discipline
and incentives
