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Open Innovation Quiz

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Business/Economics Quiz on Open Innovation Quiz, created by Rob Jongenelen on 22/06/2017.
Rob Jongenelen
Quiz by Rob Jongenelen, updated more than 1 year ago
Rob Jongenelen
Created by Rob Jongenelen almost 7 years ago
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Resource summary

Question 1

Question
What was the main problem with innovations coming from the early PARC labaratories?
Answer
  • They resulted in too much spin-offs
  • The government was not invesing in computer technology, and the innovations could therefore not be commercialized
  • They were beneficial for society, but not for Xerox as a parent company
  • They were the result of closed innovation practices and therefore had no value for the market
  • Not much complementary products were on the market back then

Question 2

Question
The main difference between the open and closed innovation paradigm is...
Answer
  • In the open innovation paradigm, the company does not seek for new breakthroughs. The company mostly takes in external ideas.
  • The closed innovation paradigm is not sustainable, where the open paradigm is.
  • Within the closed innovation paradigm only limited actors are involved in the development of an innovation, which may result in innovations that are not marketable by the parent company
  • Open innovation is only beneficial for small companies, where large companies can better pursue a closed innovation paradigm
  • Closed innovation leaves a lot of ideas "on the shelves", where open innovation makes almost all ideas exploitable

Question 3

Question
What is the main challenge when commercializing a new technology?
Answer
  • Determining the right price to enter the market
  • It is often unknown which market can benefit most from a technology
  • Tensions arise when parties need to decide who is going to commercialize the technology
  • Both technical as wel as market uncertainty need to be managed/anticipated
  • Test results are often not in line with actual market performance

Question 4

Question
Important guidelines to follow, when planning the innovation trajectory of a new technology are... (three answers are correct)
Answer
  • Seek to explore a variety of possibilities, for which you should seek rapid feedback at a low cost
  • Take enough time to specify the technical characteristics of the technology, you need to make sure that no errors are made
  • Try to keep your (innovation) practices closed for as long as the technological potential of the innovation is unknown
  • Instead of detailed, thorough, and careful planning, you should investigate some initial probes and react quickly to the new information
  • Adopt a strict policy within your stage-gate model, when projects are too expensive you have to stop them early
  • Search for tests that are highly faithful to the eventual market, so that early success with the test is highly correlated with later market success

Question 5

Question
When James McGroddy (former research director of IBM) talked about "playing chess, playing poker", what did he mean?
Answer
  • All innovation processes are different, some play it safe (chess) and some are very uncertain (poker)
  • You are developing your product internally, where you know the framework you are working within (chess), but when you market an innovation you enter the market and much is unknown (poker)
  • To keep your company ambidextrous you have to search new marketing possibilities (poker), as well as keep your current products the way they are (chess)
  • As a company you need a stream of innovations in your funnel that you can market yourself (chess), but you also need to use your environment/network to benefit from your ideas, or be able to profit from external ideas yourself (poker)
  • Open innovation is about playing chess, no direct financial consequences are related to following the paradigm, but in closed innovation practices, a unsuccessful innovation directly results in costs for the company

Question 6

Question
Which two main developments led to more decentralized funding/higher education in the US, and indirectly to the rise in number and quality of qualified engineers and scientists?
Answer
  • Universities in the US recruited more and more international students, which put pressure on the federal government to promote higher education
  • The federal government established a land-grant program for state universities that focused on science and technology after the Civil War.
  • The federal government (US) created Humpry's law, which increased the possibilities for companies to fund universities and influence research projects
  • The federal government established funding for agricultural extension initiatives among other the Morrill Act. This legislation created a network of government-funded, locally based research offices, to disseminate new ideas in agriculture.
  • More and more foreign engineers came to America to work at the top universities in the country. The federal government developed the Morrill Act to motivate these individuals to keep working in the US

Question 7

Question
What is meant with the tension between research and development?
Answer
  • Research is about exploring new frontiers, leading to new exciting discoveries, where development is more about taking the output of research and use it to solve problems related to these new ideas
  • Research is an academic activity, which focusses itself on theory and implications for real-life scenarioes. Development is about a practical example and the manners in which this example can reach maximal benefit in real-life
  • Research an activity which requires higher levels of expertise (e.g. engineers or academics), where development has a clear framework and can therefore be conducted by a broad range of individuals.

Question 8

Question
Chesbrough (2006) identified several "erosion factors" regarding the closed innovation paradigm, which option is NOT part of his list?
Answer
  • The increasing availability/mobility of skilled workers
  • The venture capital market
  • The external options for ideas sitting on the shelf
  • The increasing capability of external suppliers
  • The increase in global markets

Question 9

Question
Chesbrough (2006) calls the presence of capable external providers is "a double-edged sword" for large companies with extensive internal R&D investments, why? (two answers are correct)
Answer
  • It supports the ability to apply these R&D investments in a wide variety of areas in less time than it would take if the company had to perform every function in the value chain on its own (which results in faster time-to-market)
  • Both the presence as well as the open innovation possibilities of these capable external providers may harm the large company
  • The success of the new innovation creates a cognitive trap for the company in later stages, which requires the company to keep an explorative mindset
  • They allow the firm to optimally test their new innovations with a larger user-group, which results in more qualitative technologies
  • These R&D investments can easily be combined with work from other parties (e.g. in-licensing, or through joint-ventures). They therefore allow the change to open innovation practices for the focal company

Question 10

Question
"Not invented here" (NIH) firstly had a different meaning, as firms were not eager to work with external knowledge as they did not trust it. What meaning does this notion have in the perspective of open innovation?
Answer
  • Companies need not reinvent the wheel, since they can rely on external sources to do the job effectively
  • Externally gathered technologies are often qualitatively better, because they included knowledge that is not familiar
  • It became a trend to use knowledge that is not yours, knowledge from well-known companies was labelled with NIH when used in a focal company's product
  • Companies need to keep track of IP, and make sure that they are not confronted with the (partial) commercialization of external input from partner companies
  • The same meaning as it had before

Question 11

Question
What are the three main positive influences of having a vibrant VC community?
Answer
  • They constitute a basis for new organizations experimenting with novel combinations of technologies
  • They create a rich portfolio of freely accessible knowledge
  • They can help open innovating firm to internally catalyze their innovation process
  • They have important information that can be vital for the open innovating company
  • They filter out only the most promising company initiatives

Question 12

Question
What statement is true regarding the relationship between IP and open innovation?
Answer
  • Open innovation practices should never result in the cannibalization of your own business
  • Open innovation firms accept that they can rarely control an important technology (through IP) for an extended period
  • IP is crucial when working together in an open innovation environment, it often secures the benefits for the innovation company
  • Relying on IP is sometimes necessary because the costs of moving too late are greater than moving too soon

Question 13

Question
What is meant with the innovation systems "architecture"?
Answer
  • A hierarchy of connections between disparate functions within a system
  • A set of disparate functions and connections between them
  • A system description based on clusters of coherent components

Question 14

Question
Firm can create and capture value form the technology in three basic ways, which?
Answer
  • Through incorporating the technology in their current business
  • Through licensing the technology to other firms
  • Through launching new ventures that exploit the technology in new business areas
  • Through employing knowledge transfer practices in use-case scenarios
  • Through marketing of the technology outside of the target market
  • Through in-licencing of complementarities

Question 15

Question
Chesbrough and Rosenbloom have developed a specific working definition of a business model, based on 6 key elements that are the main functions of it. Which combination of three of those elements is WRONG?
Answer
  • Value network, cost structure & target margins, competitive strategy
  • Technology-intensity, structure of the value chain, value network
  • Cost structure & target margins, structure of the value chain, market segment

Question 16

Question
The value chain must achieve two goals, which two?
Answer
  • It must create value
  • It must claim a portion of value created
  • It must be focused to a target market
  • It must be part of a value network
  • It must represent a uniform competitive strategy
  • It must develop local hotspots

Question 17

Question
What is the best explaination of the "cognitive trap"?
Answer
  • The firm misses the better business model because it conflicts with the firm's current model
  • The firm does not consider opportunities outside the current portfolio of clients
  • The firm has a prevailing wisdom within the company about how the world and how the firm competes in this world to make money
  • The firm becomes entrenched in its current model and is not able to recognize the information that may point the way to a different an perhaps better model

Question 18

Question
What is the best explanation of the "dominant logic" of the firm?
Answer
  • The firm has a prevailing wisdom within the company about how the world and how the firm competes in this world to make money
  • The firm becomes entrenched in its current model and is not able to recognize the information that may point the way to a different an perhaps better model
  • The firm has a main view of which technologies have potential and which have not, which can lead to missed opportunities for the company
  • The firm misses the better business model because it conflicts with the firm's current model

Question 19

Question
How is the "potential trap" best defined?
Answer
  • The firm becomes entrenched in its current model and is not able to recognize the information that may point the way to a different an perhaps better model
  • The firm misses the better business model because it conflicts with the firm's current model
  • The firm has a main view of which technologies have potential and which have not, which can lead to missed opportunities for the company
  • The firm lacks the potential to exploit its network connections, and therefore misses opportunities to conduct open innovation practices

Question 20

Question
Dahlander & Gann (2010) discuss the different forms of "openness" a company can follow? They identify several inbound and several outbound processes. Which combination of a process (mentioned by the authors) and its categorization is correct (adopting the view of the focal company)?
Answer
  • Marketing - Inbound
  • Sharing - Outbound
  • Selling - Inbound
  • Revealing - Inbound
  • Acquiring - Inbound
  • Marketing - Outbound

Question 21

Question
Which statement, based on Dahlander and Gann (2010), is true?
Answer
  • Different forms of openness can be categorized based on the fact if there is money involved (pecuniary/non-pecuniary) and the extent to which the innovation is inbound or outbound
  • Different forms of openness can be categorized based on the fact if there are two or more parties involved (dyadic or network) and the extent to which the innovation is inbound or outbound
  • Different forms of openness can be categorized based on the fact if there is money involved (pecuniary/non-pecuniary) and the extent to which there are two or more parties involved (dyadic or network)
  • Regarding the appropriability regime informal methods include (lead times, first mover advantages, lock-ins), where formal methods include (spin-off, joint ventures, in-licensing)
  • Regarding the appropriability regime it should be stressed that firm that lack IPR, often experience a "myopia of protectiveness"
  • When competitors have strong complementarities, it should be stressed that greater chances occur when collaborating with them

Question 22

Question
Work by Arrow (1962) (emphasized by Dahlander and Gann (2010)) mentiones the so-called "disclosure paradox" when dealing with selling (outbound innovation). What does the disclosure paradox mean?
Answer
  • The potential licensee receives the information without paying for it and could - in principle - act opportunistically and steal the idea
  • Companies often struggle to (don't) mention the use of in-licensed IP, when out-licensing its own technologies
  • The potential licensee may receive too much information when the license includes to many technological aspects, on the other hand, lacking information may result in unsatisfied partners

Question 23

Question
Chesbrough (2007) mentions several costs an benefits of closed, as well as open business models. Check the elements below which represent advantages of the open business model (4 are present)
Answer
  • Revenues based on sales/divesting
  • Revenues based on spin-offs
  • Revenues based on out-licensing
  • Cost reduction based on less internal development costs
  • Cost reduction based on less commercialization costs
  • Revenues based on larger margins

Question 24

Question
Dittrich & Duysters (2007) explain the benefits of inter-firm networks, based on the example of Nokia. What are the FOUR benefits they stress?
Answer
  • Flexibility
  • Speed
  • Innovation
  • Ability to adjust
  • Value creation
  • Communication
  • Knowledge transfer

Question 25

Question
In the article by Dittrich & Duysters (2007) the relationship between different firm relations and different firm goals are stressed, which statement is true?
Answer
  • Companies pursuing a exploration strategy will often establish alliances with partners they infrequently collaborated with - so-called weak-ties
  • Companies pursuing an exploitation strategy will often establish alliances with partners that are both frequent, as well as infrequently, matched with the focal firm (weak- and strong-ties)
  • Companies pursuing a exploitation strategy will often establish alliances with partners they infrequently collaborated with - so-called weak-ties
  • Companies pursuing an exploration strategy will often establish alliances with partners that are both frequent, as well as infrequently, matched with the focal firm (weak- and strong-ties)

Question 26

Question
Van de Vrande, Lemmens & Vanhaverbeek (2006) use the transaction-cost economics approach as well as the real options reasoning to conclude that...
Answer
  • In the early stages of NPD, where technological and market uncertainty are very high, companies are better off using governance modes that are reversible and involve a low level of commitment.
  • In the early stages of NPD, where technological and market uncertainty are very high, companies are better off using governance modes that are less-reversible and are more hierarchical
  • In the late stages of NPD, where technological and market uncertainty are very high, companies are better off using governance modes that are reversible, but are more hierarchical

Question 27

Question
Several different concepts are mentioned by Van de Vrande, Lemmens & Vanhaverbeek (2006) to describe modes of new business development, which statement is true?
Answer
  • Corporate entrepreneurship: consists of an established company’s set of activities required to establish new ventures with a sustainable competitive advantage.
  • Corporate venturing: consists of an established company’s set of activities required to establish new ventures with a sustainable competitive advantage.
  • Absorptive capacity: that ability of a firm to take in new knowledge and effectively commercialize it internally
  • Corporate venturing: consists of an established company's set of activities required to successfully licence-in and licence-out innovations, to establish an optimal innovation portfolio
  • Corporate entrepreneurship: consists of an established company's efforts to cannibalize its own activities and therefore "reinvent" the company
  • Absorptive capacity: the ability of a firm to collect a broad set of partners to collaborate with within open innovation practices

Question 28

Question
Based on the transactions costs theory findings within Van de Vrande, Lemmens & Vanhaverbeek (2006), two main conclusions are drawn regarding different kinds of knowledge transfer, which two?
Answer
  • Market transactions are efficient for tacit knowledge transfer, as this form of knowledge can be easily identified and managed
  • Market transactions are efficient for explicit knowledge transfer, as this form of knowledge is explicit and can be easily transferred
  • Mutual learning is efficient for explicit knowledge transfer, as this form of knowledge can only be sourced externally when the cooperating firm makes transaction-specific investments
  • Mutual learning is efficient for tacit knowledge transfer, as this form of knowledge can only be sourced externally when the cooperating firm makes transaction-specific investments
  • Mutual learning and market transactions are both efficient for tacit knowledge transfer, as this form of knowledge can only be sourced externally when the cooperating firm makes transaction-specific investments

Question 29

Question
Real options can be described in terms of option creation (e.g. the initial decision) and option exercise (e.g. the exercise of the option created in the first stage). They are typically created under high levels of environmental uncertainty and allow companies to defer commitment until uncertainty about the opportunity has decreased to a manageable level.
Answer
  • True
  • False

Question 30

Question
What statement about the different governance modes, defined by Van de Vrande, Lemmens & Vanhaverbeke (2006) is correct?
Answer
  • Corporate investments can be defined as equity investments by established corporations in entrepreneurial ventures.
  • Strategic technology alliances can be defined as non-equity investments by established corporations in entrepreneurial ventures.
  • Corporate investments can be described as cooperative efforts in which two or more separate organizations, join forces to share reciprocal inputs
  • Acquisitions can be defined as cooperative efforts in which two or more separate organizations, join forces to share reciprocal inputs
  • Spin-ins can be defined as one firm buying another for the intent of gaining access to the acquired firm's technology

Question 31

Question
Technological distance is an example of exogenous uncertainty
Answer
  • True
  • False

Question 32

Question
Vrande, Lemmens & Vanhaverbeke (2006) make the distinction between endogenous and exogenous uncertainty. Which statement about these two forms is true
Answer
  • Information assymetry is a form of endogenous uncertainty and refers to the fact that the investing firm does not have access to all the information relevant to make the investment decision
  • Information assymetry is a form of exogenous uncertainty and refers to the fact that the investing firm does not have access to all the information relevant to make the investment decision
  • Industry uncertainty is another term for endogenous uncertainty
  • Industry uncertainty is a form of exogenous uncertainty and is mostly related to the uncertainty that occurs when collaborating with other firms in the market
  • Industry uncertainty is a form of endogenous uncertainty and has everything to do with the stage of development the new technology is in

Question 33

Question
The main idea of modularity is...
Answer
  • Dynamics of technology development should reflect the dynamics of a firm network
  • Dynamics of industrial collaboration should reflect the dynamics of a firm network
  • Dynamics of network development should reflect the company's innovation practices
  • A company's innovation process should be aligned with the complementarities provided by the industry
  • Dynamics of a firm network should reflect the dynamics of technology development

Question 34

Question
Chesbrough (2003) emphasizes TWO main benefits from innovation networks, these are...
Answer
  • Resource sharing, knowledge spillovers
  • Exploration, exploitation
  • More revenue, less costs
  • Shorter time-to-market, better system integration

Question 35

Question
Chesbrough (2008) emphasizes several key distinctions between exploration and exploitation strategies of open innovation. What statement is FALSE?
Answer
  • Exploitation strategies are paired with high commitment to partner, where there is an economic benefit at stake
  • Exploration strategies are related to the use of equity ties
  • Exploitation strategies are about transferring similar technological knowledge
  • Exploration strategies are related to finding a high turnover partner, because the key technology is often in the hands of a larger player.

Question 36

Question
The concept of architectural yield, as mentioned by Chesbrough & Prencipe (2008), within modularity is defined as...
Answer
  • ... the unexploited technological performance remaining within an architecture
  • ... the benefits that accrue from a technological architecture
  • ... the fact that product architectures can only result in incremental innovations over a longer period of time

Question 37

Question
Chesbrough & Prencipe (2008) define the evolution of a innovation network along three dimensions, which dimensions do they use?
Answer
  • Knowledge
  • Technology characteristics/Institutional factors
  • Network efficiency and effectiveness
  • Endo- and exogenous uncertainty
  • Inbound and outbound innovations
  • High- and low-tech innovations

Question 38

Question
Chesbrough & Prencipe (2008) define the evolution of a innovation network in four main stages, which statement is NOT right?
Answer
  • In the pre-modular stage, information and knowledge requirements call for an explorative approach to networking
  • In the transitonal stage, firm innovation networks need to pay particular attention to start-up firms and new entrants
  • In the modular stage, firm innovation networks a firm needs to focus full capacity on exploration practices
  • In the integral phase firm innovation networks must again reach out to a variety of innovation sources

Question 39

Question
Which four steps are part of the lead-user idea-generation process as defined by Lillien et al. (2002)?
Answer
  • Goal generation
  • Lead-user selection
  • Trend research
  • Lead-user discussion groups
  • Lead-user pyramid networking
  • Lead-user workshop and idea improvement

Question 40

Question
Lillien et al. (200) concludes that (1) lead-user methods result in ideas with greater commercial potential, (2) lead-user methods that explore other markets result in new product lines, (3) lead-user methods will cost more money and time. For which hypothesis did the authors find no support? (there are two main hypotheses that are not supported, these are referred to)
Answer
  • Lead-user methods will exhibit a lower level of organizational "fit"
  • Lead-user methods will result in more radical projects
  • Lead-user methods will be more efficient for high-tech innovations
  • Lead-user methods make more efficient use of resources spend

Question 41

Question
Customer co-creation denotes an active, creative and social collaboration process between producers and customers, facilitated by an external party
Answer
  • True
  • False

Question 42

Question
Von Hippel (1998) made a distinction between two kinds of information that can be transferred between companies, with the goal of reducing uncertainty: 1. [blank_start]need[blank_end] information: better access to sufficient [blank_start]need[blank_end]-related information from customers increases the effectiveness of the innovation activities 2. [blank_start]solution[blank_end] information: better access to [blank_start]solution[blank_end] information primarily addresses the efficiency of the innovation process.
Answer
  • need
  • need
  • solution
  • solution

Question 43

Question
Piller & Vossen (2011) propose FOUR main modes of interacting with customers in the innovation process, which elements?
Answer
  • Listen to customers
  • Ask customers
  • Build with customers
  • Evaluate/test with customers
  • Design with customers
  • Engineer with customers

Question 44

Question
Which combination of customer co-creation method and its characteristics does not match?
Answer
  • Idea contest - Dyadic & Front-end
  • Idea screening - Dyadic & Back-end
  • Product-related discussion forum - Network & Front-end
  • Toolkits - Dyadic & Back-end
  • Crowdsourcing - Network & Back-end
  • Communities of creation - Network & Front-end

Question 45

Question
Three main actors (1) lead users, (2) a vibrant user community, and (3) the LEGO company are part of the so-called sustainable producer-user ecosystem (SPUE), defined by Hienerth, Lettl & Keinz (2014). The collaboration of these parties leads to several synergies, which is not a synergy of a SPUE?
Answer
  • Reduced risk for entrepreneurial lead users and the focal producer firm
  • The extension of the design space of the focal producer firm's products
  • The creation of a buzz within the user community
  • The optimal integration of knowledge capacities of all actors

Question 46

Question
Lilien et al. (2002) argues that the lead-user approach has several benefits, but Hienerth, Lettl & Keinz (2014) stress that there are limitations to the lead-user approach which are... (THREE answers are correct)
Answer
  • High potential risk
  • No sustainable relationship is generated, leading to the "not invented here" syndrome
  • Challenges of fairness arise regarding IPR
  • Knowledge generated is not representative for the whole user community
  • Benefits that accrue are not shared with lead-users, making them less eager to provide insights

Question 47

Question
Sustainable producer-user ecosystems are a combination of the following methods...
Answer
  • Lead user methods
  • User communities
  • Mass customization toolkits
  • Expert panels
  • University research groups
  • Online user discussions

Question 48

Question
Risk reduction in sustainable producer-user ecosystems is achieved through: (1) distribution across all contribution actors, and (2) sharing of knowledge and information
Answer
  • True
  • False

Question 49

Question
Lichtenthaler & Ernst (2007) mention several technology-push effects that led to the rise of external technology commercialization (ETC), which element is not part of these effects?
Answer
  • Increasing technological content of products
  • Shorter life cycles
  • More intense competition
  • Growing presence of venture capital
  • Experience of companies with ETC
  • The increasing size of markets

Question 50

Question
Strategies regarding the use of external technology commercialization can be grouped into three categories, which are...
Answer
  • Product-, technology-oriented and mixed functions
  • Product-, market-oriented and mixed functions
  • Technology-, market-oriented and mixed functions

Question 51

Question
Lichtenthaler (2009) found three main principles that strengthen outbound open innovation and one principle that did not facilitate open innovation. Below all are mentioned, but which is the principle that did not prove an effect
Answer
  • Degree of technological turbulence
  • Transaction rate in technology markets
  • Competitive intensityin technology markets
  • Degree of patent production

Question 52

Question
The main finding of Chesbrough (2003) in his article on governance and performance of Xerox's technology spin-off companies is. Effective spin-off governance structures in a highly uncertain environment must decrease experimentation and adaptation, and should provide clarity, to unlock the latent value in a technology.
Answer
  • True
  • False

Question 53

Question
What are the main reasons for creation spin-offs? (THREE answers are right)
Answer
  • Maintain strategic coherence with the parent company
  • Financial gains can be realized
  • Spur groth and support the entrepreneurial spirit in the parent company
  • Explore new markets for the parent company
  • Generate more spillovers from which the parent company can benefit

Question 54

Question
What is the right explanation of a "complementarity"?
Answer
  • Products or services that actively increase the use of the core product
  • Products or services that are created by spin-off companies
  • Knowledge which is used by the company next to their main knowledge base

Question 55

Question
The CEO of a spin-off company can better be someone from the parent company, who is familiar with the parent company's strategy and goals.
Answer
  • True
  • False

Question 56

Question
Lee et al. (2010) argue for the use of an intermediary in facilitating innovation, why NOT ?
Answer
  • They help creating a relevant data base from which they can share information/technology with the company
  • They help with network management for the small- or medium-sized company
  • They develop a culture of collaboration and facilitate the collaboration
  • They reduce the risk for operation for the small or medium-sized company

Question 57

Question
Brunswicker and Vanhavebeke (2015) emphasize several strategic types of external knowledge sourcing, which THREE elements are part of the list of 5?
Answer
  • Supply-chain sourcing
  • Application-oriented sourcing
  • Full-scope sourcing
  • Network-oriented sourcing
  • Local sourcing

Question 58

Question
Brunswicker & Vanhaverbeke (2015) identify several types of external technology sourcing, which of the following descriptions is not correct?
Answer
  • Minimal searchers, do not actively use sources of external knowledge
  • Supply-chain searchers use network partners as well as direct customers and suppliers in sourcing external knowledge
  • Technology-oriented searchers use public organizations as well as network partners as sources of external knowledge
  • Application-oriented searchers use direct customers and suppliers as well as network partners in sourcing external knowledge
  • Full-scope searchers use all external sources to extent their innovation portfolio

Question 59

Question
Van de Vrande et al. (2009) emphasize several element supporting open innovation that are most important when dealing with small- and medium-sized enterprises. What are the THREE elements of the 5 defined by Gassmann (2006) that are stressed by Van de Vrande et al. (2009)?
Answer
  • Globalization
  • Technology intensity
  • Technology fusion
  • New business models
  • Knowledge leveraging

Question 60

Question
Van der Borgh, Cloodt & Romme (2012) have several key insights, which over the following elements is not part of their conclusions?
Answer
  • Two key sources of value creation in knowledge-based ecosystems are (1) facilitation of the innovation process and (2) the creation of a innovation community
  • Co-evolution of a knowledge-based ecosystem's business model with firm-level business models explains why technology-based firms join, stay in, or leave the ecosystem.
  • Ecosystem managers have to deliberately facilitate exit routes of companies that no longer fit the ecosystem
  • Knowledge-based ecosystem value creation draws from the dynamic of single firms as well as ecosystems at large.
  • Geographical hotspots are more efficient in knowledge transfer than other innovation networks, because of the easy of communication and collaboration

Question 61

Question
Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology
Answer
  • True
  • False

Question 62

Question
During the lectures, several elements are mentioned as being part of the innovation dilemma. Which element of the innovation dilemma is explained wrong?
Answer
  • "Technology Push" or "Market Pull", where technology push is centered at the R&D department, market pull is centered in the market (lead users)
  • Product or process innovation, where product innovation requires innovation processes where process innovation requires external consulting
  • Closed or open innovation, a trade-off between an internal focus or a mixed focus (both internal and external sources)

Question 63

Question
The open innovation model combines...
Answer
  • Internal ideas
  • External ideas
  • Internal paths to market
  • External paths to market

Question 64

Question
Differences between open and closed innovation are partly determined by the industry type
Answer
  • True
  • False

Question 65

Question
In the course we were confronted by fully closed, as well as fully open practices in the open innovation and the closed innovation paradigm. However, in the first lecture we were introduced by the theory of Huizingh (2011) which also explains (1) the combination of a open innovation process with closed innovation outcomes, and (2) the combination of a closed innovation process with open innovation outcome. What terms does Huizingh (2011) use for these two scenarios?
Answer
  • Scenario 1 - private open innovation & Scenario 2 - public innovation
  • Scenario 1 - public innovation & Scenario 2 - private open innovation
  • Scenario 1 - open source innovation & Scenario 2 - public innovation
  • Scenario 1 - private open innovation & Scenario 2 - open source innovation
  • Scenario 1 - open source innovation & Scenario 2 - private open innovation

Question 66

Question
The second lecture on business models makes clear that a better business model is more important than a better technology. A good example is the story of DSM's DYNEEMA.
Answer
  • True
  • False

Question 67

Question
Benefits of an open business model, as defined by Chesbrough (2007) include all the following elements, except from one. Which one?
Answer
  • It helps to create value, by leveraging more ideas due to the inclusion of a variety of external concepts
  • It helps to implement innovative offerings
  • It allows for greater value capture by utilizing a firm's key asset, resource or position not only internally but also in other firm's businesses
  • It creates new pathways to the market
  • It helps to be more competitive, by broading your firms unique selling points

Question 68

Question
Which elements enlarge the costs when following an inbound open innovation pathway (Smits et al.)? (THREE in total)
Answer
  • Searching for potential partners
  • Compensating partners for their knowledge and competences
  • Coordinating and controlling partnerships
  • Setting up transactions on a frequent basis
  • Risks need to be anticipated in budget

Question 69

Question
What is not a government mode for external technology sourcing?
Answer
  • Spin-offs
  • Licensing agreements
  • Strategic alliances
  • Mergers & acquisitions
  • Corporate venture capital (CVC)

Question 70

Question
Van de Vrande, Lemmens & Vanhaverbeke (2006) emphasize that... (choose the option that is most applicable)
Answer
  • External corporate venture capital is by definition explorative and the commercial value of technologies involved is highly uncertain
  • External corporate venture capital is by definition exploitative and the commercial value of technologies involves is often high
  • External corporate venture capital is by definition not exploratory nor exploitative, because it encompasses both elements of internal as well as external benefits

Question 71

Question
Trust is an example of exogenous uncertainty
Answer
  • True
  • False

Question 72

Question
Studying governance mode choices from a transaction cost economics perspective only does not lead to satisfactory results, this because of two main elements. Which element does not provide a reason lacking performance of ONLY the transaction cost perspective? (ONE answer is correct)
Answer
  • Transaction-cost economics does not consider that there exists a trade-off between flexibility and the need for superior control.
  • Transaction-cost economics focuses on transaction-specific uncertainty, but not on environmental uncertainty
  • Transaction-cost economics does not consider the fact that there are costs related to keeping products on the shelve

Question 73

Question
A real option is the right but not the obligation to take action in the future
Answer
  • True
  • False

Question 74

Question
What are the TWO main benefits of using the lead-user approach?
Answer
  • Using lead-users anticipates obtaining relatively high benefits
  • Lead-users are at the leading edge of important trends in the market
  • It creates the basis for customer co-creation
  • They allow to exploit the "ask" component of customer interaction

Question 75

Question
Which are the FIVE basic requirements of a toolkit, as defined by Piller et al. (2011)?
Answer
  • Trail and error learning
  • Existence of a solution space
  • User-friendliness
  • Modules and components library
  • Transferring customer solutions
  • Digital interface
  • HIgh security level
  • Integration across whole value chain

Question 76

Question
"Voice of the customer" methods are part of the customer interaction type "build"
Answer
  • True
  • False

Question 77

Question
Several pro's and cons are given for involving the crowd (e.g. crowdsourcing) in NPD processes, which is not an pro/con (Poetz and Schreier, 2012)?
Answer
  • Con - Users lack information, only firm professionals have expertise to come up with novel ideas
  • Con - Users often provide contradicting statements about a potential beneficial technology
  • Con - Users are too accustomed to current conditions
  • Pro - (Lead-)users often innovation for themselves
  • Pro - User-innovations are characterized by high commercial attractiveness
  • Pro - More quantity is more quality

Question 78

Question
Which statement is true about the difference between evaluators with high and low domain knowledge? (Denker, Eling and Herstatt, 2016) (mentioned in lecture 4)
Answer
  • Evaluators with high domain knowledge are often overestimating the orignality and user value of ideas with low innovativeness
  • Evaluators with high domain knowledge often underestimate the user value of more innovative ideas
  • Evaluators with high domain knowledge are often more capable in correctly distinguishing ideas of different innovativeness
  • Evaluators with low domain knowledge are often more positive in terms of feasibility
  • Evaluators with low domain knowledge are often more positive towards radical new product ideas

Question 79

Question
In lecture 5 several conclusions have been presented on outbound innovation. These results were based on a case study. Which conclusion does not belong in the list?
Answer
  • Formal open innovation strategies are relatively well-defined, but they have not yet won the hearts and minds of people
  • Companies know how to bring external knowledge inside, but not the other way round. Much knowledge remains unused
  • Traditional techniques for open innovation have been implemented, but the latest techniques have scarcely been applied.
  • Top managers support the use of external ideas, but have not implemented the supporting management processes
  • Companies are well aware of the different techniques to use, but often use them in the wrong manner

Question 80

Question
Technology-oriented external technology commercialization can sometimes help to guarantee freedom to operate for the company, which method is mostly used to reach this goal?
Answer
  • Cross-licensing
  • Joint-venturing
  • Out-licensing
  • Spin-offs

Question 81

Question
What is NOT a mixed external technology commercialization operation?
Answer
  • Realizing learning effects
  • Enhance firm reputation
  • Strengthen the firm's inter-organizational networks
  • Entry into foreign markets

Question 82

Question
A spin-off refers to a certain type of corporate venture capital whereby a company "spins-off" sections of itself as a separate entrepreneurial venture. Moreover, the parent company retains equity stakes in the newly spun-out venture
Answer
  • True
  • False

Question 83

Question
Brunswicker & Vanhaverbeke (2015) stress important internal organizational facilitators of openness in SMEs, which is not part of their list?
Answer
  • Innovation tactical processes
  • Long-term innovation investment
  • Innovation strategy processes
  • Innovation development processes
  • Innovation project control

Question 84

Question
Which statement is not a conclusion of Brunswicker & Vanhavebeke's (2015) research on openness and internal organization practices for innovation?
Answer
  • Application-oriented sourcing focuses on interaction with close partners in the value chain
  • Application-oriented sourcing is an alternative 'smart' move to enhance innovations success
  • The effect of application-oriented sourcing on innovation success is partially mediated by a firm's development processes and project control
  • the effect of full-scope sourcing on innovation success is fully mediated by a firm's development processes and project control
  • Full-scope searchers emphasize strategic as well as operational aspects
  • Application-oriented searcher put their efforts mostly in operational aspects

Question 85

Question
Lee et al. (2010) emphasize several manners in which small- and medium-sized companies can benefit from being part of a innovation network. Which element is not part of the list?
Answer
  • Successfully enter wider markets & cut time to market
  • Acquire complementary resources
  • Increase core competencies/strengths
  • Search for potential partners

Question 86

Question
A model by de Man (2004) is used to define the construction stage in innovation network development, which element are not part of the proposed model?
Answer
  • Alliance tie strength
  • Network size
  • Clustering
  • Membership mix
  • Collective governance
  • Technological diversity

Question 87

Question
A value network is defined by Vanhaverbeke & Cloodt (2006) as a network of connections and collaboration between parties, which carries significant value and generates a sustainable competitive advantage for the focal company.
Answer
  • True
  • False

Question 88

Question
Open business models are carefully integrated in the notion of value networks. Which statement about the article by Vanhaverbeke and Cloodt (2006) is true?
Answer
  • Competition is at the market level, and cooperating firms need to compete with other firm clusters
  • Working within a value network is about re-configuring the roles and interrelationships between parties
  • Group-level resources need to be organized by external parties, often referred to as intermediaries
  • Value creation in value networks is based on (the combination of) its resources and value within the network is relative to the value of competing products

Question 89

Question
Within a business ecosystem, several kinds of proximity are relevant for explaining the benefits within the network, which THREE?
Answer
  • Cognitive proximity
  • Physical proximity
  • Social proximity
  • Technological proximity
  • Logistic proximity
  • Competitive proximity

Question 90

Question
The four value drivers (Amit & Zott, 2001) for open innovation business models are...
Answer
  • Effectiveness, complementarities, lock-in & novelty
  • Complementarities, lock-in, novelty & efficiency
  • Competitiveness, lock-in, effectiveness & efficiency
  • Novely, efficiency, innovation & lock-in
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