Technische Universität München

Technology and Innovation Management: Introduction

Quiz

Lecture in Munich Note:

Prof. Dr. Joachim Henkel
Dr. Theo Schöller-Stiftungslehrstuhl für Not all quiz
Technologie- und Innovationsmanagement questions might have
Lecture in Straubing
been discussed at
both lecture
Prof. Dr. Claudia Doblinger
locations during one
Head of Professorship for Innovation and
Technology Management at TUM Campus
of the lectures.
Straubing
M1: Who innovates?

According to Schumpeter’s early work, what is the source of most

innovations? (See readings, Afuah)

a) Small entrepreneurial firms

b) Large firms with some degree of monopoly power

c) Public research institutions and universities

d) None of the above

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M1: Strategic Incentives to invest

Which statement about firms’ strategic incentive to invest in an

innovation is correct? Note: a radical innovation renders existing
products non-competitive, while an incremental innovation does not.
(See readings, Afuah)

a) An incumbent has a higher incentive to invest in radical innovation than

a new entrant because it has an income stream from its existing
products.

b) An incumbent has a lower incentive to invest in incremental innovation

than a new entrant because the market does not reward minor
improvements to existing products.

c) An incumbent has a lower incentive to invest in radical innovation than

a new entrant because it would cannibalize its existing products.

d) None of the above is correct.

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M1: Disruptive innovation

Why do, according to the disruptive technological change model

advanced by Christensen, incumbents fail to exploit disruptive
technologies? (See readings, Afuah)

a) Because they are too slow.

b) Because they lack the required technical competence.

c) Because they lack organizational flexibililty.

d) Because they spend too much time listening to and meeting the needs
of their existing mainstream customers.

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M1: Who innovates?

In his later work, Schumpeter argued that large firms with some degree
of monopoly power are the source of most innovations.
What reason did he give? If all of (a) to (c) are correct, tick (d) (See
readings, Afuah)

a) Because large firms have the production capacity and other

complementary assets that are necessary to commercialize an
invention.

b) Large firms have the size to exploit the economies of scale that are
prevalent in R&D.

c) Large firms are more diversified and therefore more willing to take the
kind of risk that is inherent in R&D projects.

d) All of the above.

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M1: Familiarity Matrix

What are the dimensions of the “familiarity matrix” by Roberts and

Berry? (Afuah)

a) Familiarity of a firm with buyers / competitors

b) Familiarity of a firm with the market / the technology

c) Familiarity of an inventor with a technology’s technical potential /

market potential

d) None of the above

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M2: S-Curve

Consider a diagram that plots the performance of a technology as a

function of aggregate R&D spending (S) related to this technology. R&D
on the technology starts at time T0. Assume that the curve has a convex
shape and ends at some maximum value, Smax, which is reached at
time T1.
What does the curve look like between T0 and T1 if we plot performance
against time?

a) Convex

b) S-shaped

c) Concave

d) Any of the above is possible

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M2: PLC

Which of the following characterizes the “specific phase” of the PLC

according to Abernathy and Utterback?

a) Focus of R&D is on incremental product technologies.

b) It follows right after establishment of the dominant design.

c) Organisational control is informal and entrepreneurial.

d) None of the above.

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M2: Robert Schuman

Who was Robert Schuman?

a) The inventor of the diesel engine.

b) The creator of the Christensen-Schuman model of innovation.

c) A French politician.

d) A German composer.

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Robert Schuman

▪ 1950: “Schuman Declaration”:

– presented by French foreign minister
Robert Schuman on 9 May 1950.
– It proposed the creation of a
European Coal and Steel Community
– The ECSC was the first of a series of
supranational European institutions
that would ultimately become the
European Union
▪ First President of the European Parliamentary Assembly
▪ Father of Europe‘

▪ MORE: Presentation by Prof. Ann, Monday 8 May, 6pm,

as part of the European Union Week – see next slide

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Questions about M03

The figure below illustrates a demand model. Which statement about

the curves is correct, i.e., which quantities are shown by curves 1 to 3?
p
a. 1: demand
2: marginal revenue
3: supply
1
b. 1: marginal cost
2: supply
3: demand
c. 1: supply 2
2: demand
3: marginal supply
d. 1: demand
2: marginal cost 3
3: marginal revenue
q

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Questions about M04

According to Michael Porter (2007) what is not a strategy?

a) Creating an USP for a firm

b) Developing a competitive advantage for a firm

c) Developing a sustainable competitive advantage for a firm

d) The internationalization of a firm

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Questions about M04

What are the characteristics of an active innovation strategy according

to Dodgson, Gann, Salter (2008)?

a) The risk acceptance follows the hedging bets approach.

b) Lead users are included in the innovation strategy as a valuable

knowledge source.

c) A typical company example for this innovation strategy is

Ratiopharm.

d) The focus on the type of innovation is on radical innovations.

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Questions about M04

According to Lieberman and Montgomery (1988) what drawback could

a pioneering firm experience when creating a first mover advantage?

a) Switching costs

b) Network effects

c) Incumbent inertia

d) Preemtion of scarce assets.

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Questions about M05

In the context of innovation and marketing new products, what is

“deadweight loss”?

a. The loss a firm incurs if one of its products becomes obsolete because
superior products come to the market.
b. The systematic disadvantage that large, “heavy” firms have compared
to young, small firms when it comes to radical innovation.
c. The welfare loss to society that is caused by pricing above marginal
cost.
d. The welfare loss to society that is caused by a monopolist that hinders
innovation through its market power.

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Questions about M06

Which statement about copyrights is correct?

a. To gain protection, copyrights need to be registered

b. It protects ideas against copying
c. It can be applied to computer software
d. Must be indicated by ©

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Questions about M06

According to the lecture, which of the reasons to use patents given

below is most important for firms?

a. Prevent copying
b. Prevent suits
c. Enhance reputation
d. Blocking competitors

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Questions about M07

What is not part of the „Build Business Case“ – Stage in the Stage-
Gate process (Cooper)

a. Detailed technical assessment

b. Market analysis
c. Technology development
d. Concept testing

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Questions about M07

In the context of a firm’s open innovation activities, _____ constitutes an

element of technology exploitation strategies, whereas _____ is a form
of technology acquisition. Which of the following terms fit in the gaps?

(1) technology purchasing; acquisition of

innovative firms
(2) divestment; contracting R&D
(3) exchange with universities; licensing

a. The terms stated in (1) fit in the gaps.

b. The terms stated in (2) fit in the gaps.
c. The terms stated in (3) fit in the gaps.
d. None of the terms stated in (1) - (3) fit in the gaps.

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Questions about M08

According to the lecture, which of the following is a symptom of

problems at the R&D/production interface?

a. Development cycles are too short

b. Strategic objectives of top management not clear
c. Late, unplanned changes in product design
d. Rigid sequential development process with little overlapping

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Questions about M09

Which statement about the gatekeeper is correct?

a. A gatekeeper is, unlike a promotor, not linked to a specific

project
b. The contributions and tasks of the gatekeeper are equivalent to
those of the process promotor.
c. A gatekeeper is linked to specific projects and usually holds a
high management position.
d. A gatekeeper’s central function includes distributing internal
information between different hierarchy levels.

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Questions about M09

As a consultant, you are asked to improve the innovation processes in a

large corporation. In a senior management meeting, a client makes
several statements on the promotor model that are listed below. Based
on your knowledge of the promotor model, you tell him after the meeting
that he is WRONG to believe that…

a. a power promotor can help overcome resistance

b. a process promotor is responsible for allocating resources to
innovation projects and helps involving other promotors
c. a technical promotor brings in creativity, allowing the innovation
project to be initiated.
d. the deficiencies of the technical promotor need to be identified
systematically and compensated by a power promotor

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Questions about M10

Which of the following statements about lead users is correct? Lead

users …

a. expect a high benefit from the solution to their needs, and

therefore, they often protect their innovations with patents.
b. may use their own expenses and build prototypes.
c. are leading-edge customers as they always foreshadow general
trends in a market segment.
d. cannot be firms or companies

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Questions about M10

GE Wind Energy is both a manufacturer and a user. If GE Wind Energy

developed a metal-forming piece of machinery for its turbine production,
then, according to the lecture, the company would act as…

a. a manufacturer innovator.
b. a leading-edge user.
c. an early adopter.
d. a user innovator.

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Questions about M11

According to the lecture, digitization is the…

a. use of technology to radically improve the performance or reach

of enterprises.
b. material process of converting analog streams of information into
digital bits
c. use of digital technologies to change a business model and
provide new
revenue and value-producing opportunities.
d. restructuring of social life around digital communication and
media infrastructure

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