Sample Questions Chapter 1 & 2

1. Which of these would not normally be considered an incremental innovation?

a) An electric car
b) A low-fat hamburger
c) Faster train journeys through better signalling
d) Chicken and onion flavoured potato snacks

2. Innovation can only happen in the private sector because the public sector is not
concerned with making profits or competition between firms.
a) True
b) False

3. Which of the following is NOT a source of strategic advantage through innovation?

a) Complexity - offering something which others find it difficult to master
b) Legal protection of intellectual property - offering something which others cannot do
unless they pay a licence or other fee
c) Scale of investment in R&D
d) Novelty in product or service offering - offering something no one else can

4. Haagen Daz ice cream was created to open up a new market amongst adults for what had
traditionally been seen as a children's food. This is an example of position innovation.
a) True
b) False

5. Which of the following is NOT an example of product innovation?

a) A new toothpaste
b) A new car design
c) A new version of the iPod
d) Computer-control of manufacturing operations

6. Innovation always requires a radical flash of insight - a 'eureka!' moment.

a) True
b) False

7. Which of the following would not normally be considered a radical innovation?

a) The jet turbine engine
b) Integrated circuits
c) Increased colour choice on the Volkswagen 'Beetle' car
d) Antibiotic drugs

8. According to the Abernathy-Utterback model, what follows radical innovation?

a) product innovation
b) process innovation
c) fluid phase
d) specific phase
9. According to the Abernathy-Utterback model, what causes the cycle of innovation to
repeat?
a) radical innovation
b) incremental innovation
c) fluid phase
d) specific phase

10. What is it called when technological innovation involves problem solving that improves
the method of creating or delivering a product or service?
a) process innovation
b) product innovation
c) radical innovation
d) incremental innovation

11. In what phase of an industry is there generally the most risk?

a) process
b) product
c) fluid
d) specific

12. In which phase of an industry does competition typically shift away form design
uniqueness to production costs as firms focus on achieving production efficiencies with the
common design?
a) process
b) product
c) fluid
d) specific

13. In which phase is there most likely to be the largest increase in the number of firms?
a) process
b) product
c) fluid
d) specific

14. Which researcher(s) modified the Abernathy and Utterback model by applying it to service
businesses?
a) Barras
b) Tushman
c) Christensen
d) Henderson and Clark

15. What is most likely to occur in the second phase of the reverse product cycle theory?
a) the adopted technology is employed to make existing services more efficient
b) incremental improvements are most likely to occur
c) the new technology is used to make the service more efficient
d) the technology is used to create new services, making changes radical
16. Which model was developed after observing that, in some cases, incumbent firms had
little trouble transitioning to new radical technologies?
a) model of competence destroying and competence enhancing innovation
b) model of value networks and disruptive innovation
c) model of reverse product cycle theory
d) model of architectural innovation

17. According to Henderson and Clark, which type of innovation is one that changes the
linkages between the components but leaves the components intact?
a) radical
b) stable
c) modular
d) architectural

18. According to Henderson and Clark, what type of innovation would occur if core concepts
were reinforced and linkages were unchanged?
a) incremental
b) modular
c) architectural
d) radical

Solution
1) a
2) b
3) c
4) a
5) d
6) b
7) c
8) c
9) a
10) a
11) c
12) d
13) c
14) a
15) c
16) a
17) d
18) a