CHAPTER 2 Sources of Innovation

1. are producers of complementary goods or services (e.g. for video game

console producers such as Sony or Nintendo, game developers)
a. complimentors
b. collaborators
c. complementors
d. competitors
2. are institutions designed to nurture the development of new businesses
that might otherwise lack access to adequate funding or advice.
a. science parks
b. incubators
c. technology transfer offices
d. universities
3. the ability of an organization to recognize, assimilate, and utilize new knowledge
a. absorptive capacity
b. intellectual capacity
c. creative capacity
d. innovative capacity
4. Research targeted at increasing scientific knowledge for its own sake. It may or may not
have any long-term commercial application
a. basic research
b. applied research
c. experimental research
d. descriptive research
5. is the practical implementation of an idea into a new idea into a new device
or process.
a. production
b. innovation
c. manufacturing
d. development
6. approach argued that innovation was driven by the perceived demand of
potential users
a. knowledge push
b. science-push
c. knowledge pull
d. demand pull
7. approach assumed that innovation proceeded linearly from scientific
discovery, to invention, to engineering, then manufacturing activities, and marketing.
 a. demand push
b. science-push
c. knowledge pull
d. demand pull
8. Research targeted at increasing knowledge for a specific application or need.
a. basic research
b. applied research
c. experimental research
d. descriptive research
9. Activities that apply knowledge to produce useful devices, materials, or processes.
a. production
b. innovation
c. manufacturing
d. development
10. A private network, accessible only to authorized individuals. It operates only within the
organization
a. Internet
b. Innernet
c. Intranet
d. Ethernet
11. Technology clusters are divisional clusters of firms that have a connection to a common
technology, and may engage in buyer, supplier, and complementor relationships, as
well as research collaboration.
a. True
b. False
12. Basic research refers to efforts targeted at increasing knowledge for a specific
application or need.
a. True
b. False
13. The ability to generate new and useful ideas is termed creativity.
a. True
b. False
14. According to Rothwell, different phases of innovation are likely to be characterized by
varying levels of demand-push and demand-pull.
a. True
b. False
15. The benefits firms reap by locating in close geographical proximity to each other are
known collectively as agglomeration economies.
 a. True
b. False
16. Technological spillovers occur when the benefits from the research activities of one
firm (or nation or other entity) spill over to other firms (or nations or other entities).
a. True
b. False
17. Complex knowledge is knowledge that cannot be readily codified.
a. True
b. False
18. Innovation begins with the generation of new ideas.
a. True
b. False
19. An individual’s creative ability is a function of his or her intellectual abilities, knowledge,
personality, motivation, and enlightenment.
a. True
b. False
20. According to Rothwell, different phases of innovation are likely to be characterized by
varying levels of science-push and demand-pull.
a. True
b. False