Mgmt 364

Front 1

Appropriability

Back 1

degree to which a firm is able to capture the rents from its innovation

Determined by how easily or quickly competitors can copy the innotvation

Front 2

Patents

Back 2

Legal rights granted by the government that exclude others from producing, using, or selling an invention

Must be useful, novel, and non obvious

Front 3

Patents

Utility

Design

Plant

Back 3

Utility- protects new and useful processes, machines, manufactured items

Design- protects original designs

Plant- protect new varieties of plants

Front 4

Patent Laws

Back 4

Countries have their own laws

Some treaties seek to harmonize laws

Front 5

Paris Convention for the Protection of Industrial Property

Back 5

Forgeign nationals can apply for the same patent rights in member countries

Once applied can apply to different member countries and be treated as they applied on the same date

Front 6

Patent Cooperation Treaty

Back 6

Single PCT office and reserve the right to apply in more then 100 countries for up to 2.5 years

Establishes date of app. in all member countries

Covers must of the world

Front 7

Trademarks

Back 7

Trademarks and service marks; a word, phrase, symbol, design, or other indicator that is ised to distinguish the source of goods or services of one party from those of another

Front 8

Copyrights

Back 8

Copyright is a form of protection granted to works of authorship

Front 9

Trade Secrets

Back 9

info that belongs to a business that is generally unknown to others

Firms can protect info with disclosing info for a patent

Front 10

Nature of Technology

Product vs. Process

Back 10

Often it is difficult to protect process innovation

When an innovation is embedded in the process, trade secret could be a way to protect innovation

Front 11

Tacit vs. Codified knowledge

Back 11

Tacit knowledge: difficult to transfer: risk of imitation is low

Codified knowledge: easier to transfer : risk of imitation is high

Front 12

Dominant Design Paradigm

Back 12

Some situations, diffusing a technology may be more valuable that protecting it

Front 13

Wholly Proprietary Systems

Back 13

systems may be legally produced or augmented only by their developers

Front 14

Wholly Open

Back 14

may be freely accessed, augmented and distributed by anyone

Front 15

Complementary Assets

Back 15

Successful commercialization of an innovation requires a set complementary assets and capabilities

May include

Manufacturing Capabilities

Marketing capabilities

Front 16

An innovation can be competence enhancing to one firm, while competence destroying foranother.

Back 16

True

Front 17

Innovation often originates with those who create solutions for their own needs

Back 17

True

Front 18

The time invested by buyers to become familiar with a product’s operation can be consideredas a switching cost.

Back 18

True

Front 19

New product development time increases when using strategic alliances and cross-functionalteams.

Back 19

True

Front 20

Late entrants typically bear the bulk of research and development expenses.

Back 20

False

Front 21

As firms’ routines and capabilities become more and more oriented around the dominantarchitecture, the firms become less able to identify and respond to a major architecturalinnovation

Back 21

True

Front 22

Late entrants typically bear the bulk of research and development expenses.

Back 22

False

Front 23

In the context of S-curve in technological improvement, plotting performance against time willresult in the same characteristic curve as plotting performance against effort, only if:

Back 23

Effort is relatively constant over time

Front 24

Iris is quite skeptical about new innovations and is likely to adopt something new after gettingsome pressure from her peers. However, she is not so risk averse that she will wait until alluncertainty of a new technology has been resolved; she’s willing to accept a little uncertaintyif her peers already use the product. Which of the following adopter categories does Irisbelong to?

Back 24

Late majority

Front 25

A CEO of a certain pharmaceutical company asked his consultant if it was a good idea toimplement the S-curve model to predict when a technology would reach its limits. Theconsultant identified a limitation with the use of the model. Which of the following is thelimitation identified by the consultant?

Back 25

b. Unexpected changes alter the shape of a technology’s S-curve

Front 26

Once a new product design becomes a dominant design:

Back 26

The product design is adopted by the majority of producers

Front 27

Which one of the following is the best indicator that a new business is learning?

Back 27

Reliable forecast

Front 28

Which one of the following is not an essential task to build a successful new business withinan established organization?

Back 28

Breaking out

Front 29

The term ___________ indicates that the product is novel to the individual who made it, butknown to everyone else.

Back 29

Reinvention

Front 30

. ____________ are individuals or organizations that transfer information from one domain toanother in which it can be usefully applied.

Back 30

Knowledge brokers

Front 31

Compared to single-discipline based collaboration, what is likely to be the mean and varianceof the output from multidisciplinary collaboration?

Back 31

Lower mean - Higher variance

Front 32

Within P&G, __________ are senior people who create external connections with universityand industry researchers and form supplier networks, often combining scientific literature,patent databases and other data sources with physical prospecting for ideas.

Back 32

Technology Entrepreneurs

Front 33

Which of the following is a statement for the success of the “Connect and Develop” model?

Back 33

It requires a full-time, senior executive to run any connect-and-develop initiative.

Front 34

. ______________ is a positive externality from R&D resulting from the spread of knowledgeacross organizational or regional boundaries.

Back 34

Technological Spillover

Front 35

If the aspects that customers have come to expect in a technology are difficult for competitorsto imitate, a technology leader:

Back 35

Can yield sustained monopoly rents.

Front 36

In the video game console industry, Magnitude was the first firm to introduce a console in themarket. However, consumers were uncertain about the product, and its high costs discouragedconsumers from purchasing it. Eventually, Magnitude withdrew the product from the market.A few years later, Mantel and Adventura came up with their respective gaming consoles andsuccessfully established their products. Mantel and Adventura will be considered as:

Back 36

Early followers

Front 37

1. Jupiter Inc., a software firm, is starting to face competition from the new entrant Coral Inc.Jupiter Inc. wants to prevent its existing customers from switching to Coral’s newly developedsoftware. Which of the following measures should Jupiter Inc. adopt?

Back 37

Ensure that customers find its software more convenient and simpler to use, ascompared to that of Coral Inc.

Front 38

2. Fashion Fair, the first mover in the “all year discount” stores market, lost its market share to alate entrant—Brand Fair. Brand Fair operated its discount stores solely over the Internet,which, in turn, saved a lot of expenses. However, Fashion Fair was unable to adopt the onlinestore business model due to its existing contracts with suppliers and investment in a physicalinfrastructure. This is an example of:

Back 38

Incumbent inertia

Front 39

Which one of the following is not a source of first-mover advantages?

Back 39

Environmental uncertainty

Front 40

Which one of the following is not a source of late-mover advantages?

Back 40

Faster innovation due to competitive pressure

Front 41

Which one of the following combination of the paces of technological evolution and marketevolution will most likely lead to first-mover advantages in both short term and long term?

Back 41

Slow technological evolution and fast market evolution

Front 42

. Knowledge that cannot be readily codified is called __________ knowledge

Back 42

Tacit

Front 43

A bicycle manufacturing company adopted a new type of inventory management system.This inventory system improved the productivity of its manufacturing unit and the quality ofthe bicycles. This is an example of ______________ innovation.

Back 43

process

Front 44

_______ approach to research and development assumed that innovationproceeded linearly from scientific discovery, to invention, to engineering, then manufacturingactivities, and finally marketing.

Back 44

Science-push

Front 45

Technology trajectory

Back 45

The path that a technology follows through time

Front 46

Absorptive capacity

Back 46

The ability of an organization to recognize, assimilate, and utilize new knowledge.

Front 47

For a new technology to be successful in a market, it is enough for the new technology’sstand-alone utility to exceed that of the incumbent standard

Back 47

False

Front 48

The learning curve indicates that the more units a company produces of an item, the more eachunit will cost.

Back 48

False

Front 49

Just as the value of a stock is independent of the call holder’s behavior, the value of an R&Dinvestment is also independent of the investor’s behavior.

Back 49

False

Front 50

After licensing in a technology, the firm typically has limited discretion over what it can dowith the technology

Back 50

True

Front 51

FootsTrend Co. and AmazeDeals entered into an alliance. FootsTrend wanted access to onlinesales but did not have the same expertise in this field as AmazeDeals. AmazeDeals wanted tosell FootsTrend exercise mats from its online Web site. This is an example of individualalliance with capability transfer.

Back 51

False

Front 52

According to the net present value (NPV) method of evaluation of projects, if there are cashoutflows for multiple periods, then:

Back 52

Those cash outflows will have to be discounted back to the current period.

Front 53

Which one of the following best captures the mode of collaboration in which a company canpost a problem, anyone can propose solutions, and the company chooses the solutions it likesthe best?

Back 53

Innovation Mall

Front 54

. When technology is progressing rapidly, firms are more likely to:

Back 54

c. Use linkages with other specialized firms to access resources they do not possess

Front 55

In the ______________method, in order to establish scales of customer preferences,individuals in a group are each given a stack of cards with an object or idea on each card.

Back 55

Q-sort

Front 56

Which of the following is true of quantitative methods of analyzing new projects, particularlyin rapidly changing environments?

Back 56

They enable managers to statistically compare projects.

Front 57

Henry calculated that the net present value of his investment would be zero with a 15 percentinternal rate of return. This means that

Back 57

Henry can compare the 15 percent internal rate of return to the required rate ofreturn to determine if the investment should be made.

Front 58

According to Christensen, Kauffman and Shih (2008), which one of the following statementsis not true?

Back 58

The projected value of an innovation must be assessed against a range of scenarios, theleast likely of which is often deteriorating the competitive and financial future.

Front 59

Which one of the following statements is not true for the formula for valuing a project usingreal options approach?

Back 59

If revenue volatility exceeds cost volatility, project volatility should be adjusted up

Front 60

Which of the following is an advantage of collaborating?

Back 60

It gives firms more flexibility.

Front 61

Which of the following is true of contract manufacturing?

Back 61

It enables a firm to tap the greater economies of scale.

Front 62

Dynamix Developers Co. wants to develop its technology very fast, with low cost and lowcontrol. It would also like to leverage its existing competencies without developing newcompetencies, and may need to access the competencies of other firms. Which of thefollowing is the best mode of development for Dynamix Developers to meet these criteria?

Back 62

License out

Front 63

When each partner contributes capital and owns a specified right to a percentage of theproceeds from the alliance, the collaborative relationship is referred to as _____

Back 63

Equity ownership

Front 64

Which one of the following is incorrectly explaining the advantages of the correspondingcollaboration structure?

Back 64

Flat – requires all parties to arrive at mutually beneficial solutions

Front 65

Which one of the following types of synchrony (Davis, 2013) best represents the followingapproach: a firm engages first with other companies of a higher coordination priority and thensignals its intention to a select group of other companies to respond.

Back 65

Hybrid synchrony

Front 66

Neon Inc. is an electronics manufacturing company. It has adopted a dominant design for itstelevision audio speakers. Which of the following is the firm most likely to experience, as aresult of this decision?

Back 66

Neon Inc. will face increasing returns to adoption

Front 67

When can winner-take-all markets be good for consumers?

Back 67

d. When the value of technology utility and network externality returns exceedsmonopoly costs.

Front 68

Arica Software Inc. is trying to estimate the “installed base” for its software. It is trying toassess the number of:

Back 68

Users of its software.

Front 69

Between two technologies competing for dominance, when customers attain their desiredlevel of network externality benefits at lower market share levels:

Back 69

The network externality returns curves flatten out sooner.

Front 70

Which one of the following is not an appropriate strategy or tactic in standards wars?

Back 70

Survival pricing

Front 71

Which one of the following is not an environmental factor that influences the outcome of abattle for technological dominance?

Back 71

Entry timing

Front 72

In collaboration strategies, self-enforcing norms based on the goodwill, trust, and reputationof the collaboration partners are known as ___________________

Back 72

relational governance

Front 73

. The ratio of R&D expenditures to sales is known as ________________

Back 73

R&D intensity

Front 74

. If a firm has the option of investing in R&D (a real option), the cost of commercializing anew technology that is developed can be considered the _______ _______

Back 74

exercise price

Front 75

Dominant design

Back 75

A single product or process architecture that dominates a product category, typically 50percent or more of the market.

Front 76

Network externalities

Back 76

When the value of a good to a user increases with the number of other users of the sameor similar good. Also called positive consumption externalities.