TEST BANK
Technology Strategy for Managers and Entrepreneurs
Scott Shane
Pearson New International 1st Edition
Chapters 1-16 (Questions with Verified Answers)
,Table of Contents
1. Introduction
2. Technology Evolution
3. Technology Adoption and Diffusion
4. Sources of Innovation
5. Selecting Innovation Projects
6. Customer Needs
7. Product Development
8. Patents
9. Trade Secrets, Trademarks, and Copyrights
10.Capturing Value from Innovation
11.Competitive Advantage in High-Tech Industries
12.Technical Standards
13.Collaboration Strategies
14.Strategy in Networked Industries
15.Strategic Human Resource Management of Technical Professionals
16.Organization Structure for Technology Strategy
, CHAPTER 1
INTRODUCTION
TRUE/FALSE QUESTIONS
1. The reduction of costs and the improvement in quality of products made in lower wage
countries have led to enhanced markets for firms in developed countries
(False; Medium; p. 3; AACSB: Ethical understanding and reasoning ability; LO1)
2. On average, product life cycles have been shortened because more companies are offering
differentiated products.
(True; Medium; p. 3; AACSB: LO1)
3. Microsoft’s Xbox 360 provides an excellent example of a company’s efforts to develop an
innovative new product as part of its overall technology strategy.
(True; Medium; p. 2; AACSB: Reflective thinking skills; LO2)
4. Technology can be effectively defined as the use of zeros and ones in digital form on
computers.
(False; Medium; p. 4; LO1)
5. Invention is the process of using knowledge to solve a problem.
(False; Medium; p. 5; LO1)
6. Technological innovation is the use of knowledge to apply tools, materials, processes and
techniques to come up with new solutions to problems.
(True; Medium; p. 6; LO2)
7. Michael Dell’s approach to selling personal computers assembled from standard components
direct to customers is an example of technology innovation.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
8. Technology innovation almost always comes from the knowledge of computer science.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
9. Economists have shown that much of the growth in gross domestic product comes from the
use of technology to make more productive use of labor and capital.
(True; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
10. The impact from almost all technology innovation is positive.
(False; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
11. Process development is the anticipation and resolution of problems that arise in the
production of a product
(True; Medium; p. 8; LO3)
, 12. A technology strategy is the approach that a firm takes to obtain and use technology to
achieve a new competitive advantage, or to defend an existing technology-oriented
competitive advantage against erosion.
(True; Medium; p. 9; LO3)
13. Technology strategy is different form overall business strategy in that business strategy
involves the use of intellectual property management to capture financial returns to a much
greater degree than technology.
(False; Medium; p. 9; LO4)
14. Technology strategy is different form overall business strategy in that technology strategy has
to deal much more with issues of uncertainty than general business strategy.
(True; Medium; p. 9; LO4)
15. The study of technology innovation is largely centered in general strategy principles.
(False; Medium; p. 10; LO4)
16. In the U.S., services now account for more than half the total gross domestic product.
(True; Medium; p. 11; LO5)
17. Technology strategy is basically the same for both large established firms and small new
companies.
(False; Medium; p. 11; LO5)
18. Research and development intensity is much higher for small firms than for large ones.
(True; Medium; p. 12; AACSB: Reflective thinking skills; LO5)
19. Developing an effective technology strategy includes making decisions about how to
organize a company for innovation.
(True; Medium; p. 15; LO2)
MULTIPLE CHOICE
20. Technology innovation has become a crucial part of most firms strategy because:
a. technology innovation generates competitive advantage
b. most firms produce only a few related products
c. companies have been taking longer to introduce new products
d. sales and profits from new products has been decreasing
(a; Medium; p. 3 LO1)
21. Which of the following would not be considered one of the reasons why companies have
recently increased their level of technology innovation?
a. to produce a greater variety of new products
b. to introduce new products to market faster
c. increase profit from established products
d. generate competitive advantage
(c; Medium; p. 3; LO1)
2
Technology Strategy for Managers and Entrepreneurs
Scott Shane
Pearson New International 1st Edition
Chapters 1-16 (Questions with Verified Answers)
,Table of Contents
1. Introduction
2. Technology Evolution
3. Technology Adoption and Diffusion
4. Sources of Innovation
5. Selecting Innovation Projects
6. Customer Needs
7. Product Development
8. Patents
9. Trade Secrets, Trademarks, and Copyrights
10.Capturing Value from Innovation
11.Competitive Advantage in High-Tech Industries
12.Technical Standards
13.Collaboration Strategies
14.Strategy in Networked Industries
15.Strategic Human Resource Management of Technical Professionals
16.Organization Structure for Technology Strategy
, CHAPTER 1
INTRODUCTION
TRUE/FALSE QUESTIONS
1. The reduction of costs and the improvement in quality of products made in lower wage
countries have led to enhanced markets for firms in developed countries
(False; Medium; p. 3; AACSB: Ethical understanding and reasoning ability; LO1)
2. On average, product life cycles have been shortened because more companies are offering
differentiated products.
(True; Medium; p. 3; AACSB: LO1)
3. Microsoft’s Xbox 360 provides an excellent example of a company’s efforts to develop an
innovative new product as part of its overall technology strategy.
(True; Medium; p. 2; AACSB: Reflective thinking skills; LO2)
4. Technology can be effectively defined as the use of zeros and ones in digital form on
computers.
(False; Medium; p. 4; LO1)
5. Invention is the process of using knowledge to solve a problem.
(False; Medium; p. 5; LO1)
6. Technological innovation is the use of knowledge to apply tools, materials, processes and
techniques to come up with new solutions to problems.
(True; Medium; p. 6; LO2)
7. Michael Dell’s approach to selling personal computers assembled from standard components
direct to customers is an example of technology innovation.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
8. Technology innovation almost always comes from the knowledge of computer science.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
9. Economists have shown that much of the growth in gross domestic product comes from the
use of technology to make more productive use of labor and capital.
(True; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
10. The impact from almost all technology innovation is positive.
(False; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
11. Process development is the anticipation and resolution of problems that arise in the
production of a product
(True; Medium; p. 8; LO3)
, 12. A technology strategy is the approach that a firm takes to obtain and use technology to
achieve a new competitive advantage, or to defend an existing technology-oriented
competitive advantage against erosion.
(True; Medium; p. 9; LO3)
13. Technology strategy is different form overall business strategy in that business strategy
involves the use of intellectual property management to capture financial returns to a much
greater degree than technology.
(False; Medium; p. 9; LO4)
14. Technology strategy is different form overall business strategy in that technology strategy has
to deal much more with issues of uncertainty than general business strategy.
(True; Medium; p. 9; LO4)
15. The study of technology innovation is largely centered in general strategy principles.
(False; Medium; p. 10; LO4)
16. In the U.S., services now account for more than half the total gross domestic product.
(True; Medium; p. 11; LO5)
17. Technology strategy is basically the same for both large established firms and small new
companies.
(False; Medium; p. 11; LO5)
18. Research and development intensity is much higher for small firms than for large ones.
(True; Medium; p. 12; AACSB: Reflective thinking skills; LO5)
19. Developing an effective technology strategy includes making decisions about how to
organize a company for innovation.
(True; Medium; p. 15; LO2)
MULTIPLE CHOICE
20. Technology innovation has become a crucial part of most firms strategy because:
a. technology innovation generates competitive advantage
b. most firms produce only a few related products
c. companies have been taking longer to introduce new products
d. sales and profits from new products has been decreasing
(a; Medium; p. 3 LO1)
21. Which of the following would not be considered one of the reasons why companies have
recently increased their level of technology innovation?
a. to produce a greater variety of new products
b. to introduce new products to market faster
c. increase profit from established products
d. generate competitive advantage
(c; Medium; p. 3; LO1)
2
