Study Guide Management of Innovation 
Chapter 1 and 2
1. Innovation and new technologies have led to longer product life cycles and lowered product obsolescence. FALSE
2. According to the concept of innovation funnel, the number of successful products launched will be greater than the number of raw ideas generated.
FALSE
3. A firm's organizational structure and control systems have no influence on the generation of innovative ideas. FALSE
4. Innovation often originates with those who create solutions for their own needs. TRUE
5. Investing in process innovation helps firms lower their costs. TRUE
6. Technological innovations decrease:
A.
the variety of goods consumers can purchase.
B. the need for differentiation among competitors.
C. the time required to design and produce new products.
D. the use of common components between different models of the same product.
7. Technology is in its purest essence _____.
A.
knowledge
B. trial and error
C. experimentation D. guesswork 8. Unicorn Medicines, a pharmaceutical company based in the United States, has its research and development units spread across the globe. These research and development units have lately not been receiving adequate financial support. Which of the following is typically the cause for such a situation?
A.
Technical innovation leads to lower market segmentation and slower product obsolescence.
B.
Most innovative ideas do not become successful new products.
C.
The product development cycle in the pharmaceutical industry is short.
D.
The cost associated with pharmaceutical research and development is low.
9. The term _____ indicates that the product is novel to the individual who made it, but known to everyone else.
A.
discovery
B. reinvention C. creativity D. innovation 10. Which of the following is characteristic of successful inventors?
A.
They specialize solely in a single field rather than several fields simultaneously.
B.
They are curious and more interested in solutions than problems.
1. Innovation and new technologies have led to longer product life cycles and lowered product obsolescence. FALSE
2. According to the concept of innovation funnel, the number of successful products launched will be greater than the number of raw ideas generated.
FALSE
3. A firm's organizational structure and control systems have no influence on the generation of innovative ideas. FALSE
4. Innovation often originates with those who create solutions for their own needs. TRUE
5. Investing in process innovation helps firms lower their costs. TRUE
6. Technological innovations decrease:
A.
the variety of goods consumers can purchase.
B. the need for differentiation among competitors.
C. the time required to design and produce new products.
D. the use of common components between different models of the same product.
7. Technology is in its purest essence _____.
A.
knowledge
B. trial and error
C. experimentation D. guesswork 8. Unicorn Medicines, a pharmaceutical company based in the United States, has its research and development units spread across the globe. These research and development units have lately not been receiving adequate financial support. Which of the following is typically the cause for such a situation?
A.
Technical innovation leads to lower market segmentation and slower product obsolescence.
B.
Most innovative ideas do not become successful new products.
C.
The product development cycle in the pharmaceutical industry is short.
D.
The cost associated with pharmaceutical research and development is low.
9. The term _____ indicates that the product is novel to the individual who made it, but known to everyone else.
A.
discovery
B. reinvention C. creativity D. innovation 10. Which of the following is characteristic of successful inventors?
A.
They specialize solely in a single field rather than several fields simultaneously.
B.
They are curious and more interested in solutions than problems.