Technology & Innovation Management Flashcards

early market entrants who weren't the first

Answer: early followers

Early followers, also known as early adopters or second movers, are companies that enter a market after the initial pioneers (first movers) but still relatively early in the market's development. They benefit from observing the first movers' successes and failures, allowing them to refine products, processes, or business models and potentially capture market share without bearing the full risks of initial market creation.

something that is visualized or thought in the mind

Answer: idea

An 'idea' is a thought, concept, or mental impression formed in the mind. It is the initial stage of conceptualization before it is developed into something tangible or put into practice. While 'innovation' refers to the implementation of a new idea, 'idea' best fits the description of something visualized or thought in the mind.

knowledge that is difficult to codify

Answer: tacit knowledge

Tacit knowledge is personal, context-specific, and difficult to formalize, articulate, or communicate to others. It is often gained through experience and practice, residing in an individual's head and manifesting as skills, insights, and intuition. Unlike explicit knowledge, which can be easily codified and transmitted, tacit knowledge is challenging to transfer.

expenses (or advantages) that are paid for (or enjoyed) by people other than the ones who caused them. Everyone is impacted by the company's pollution.

Answer: externalities

Externalities are costs or benefits that affect a third party who is not directly involved in an economic transaction. In the given example, pollution from a company impacts everyone, even those not buying or selling the company's products. These are negative externalities because the cost (pollution) is borne by society, not just the company or its customers.

geographical groups of businesses connected by a shared technology that may work together on research projects as well as in buyer, supplier, and complementor interactions.

Answer: technology clusters

Technology clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions (e.g., universities, trade associations) in a particular field. These clusters foster collaboration, knowledge sharing, and competition, often leading to innovation and economic growth within that technological domain, aligning perfectly with the description.

Typically created by the government, regional districts promote R&D cooperation between the government, universities, and private businesses.

Answer: science parks

Science parks are typically government-backed initiatives designed to foster innovation and economic development by creating a concentrated environment for R&D. They provide infrastructure and support for collaboration between universities, research institutions, and private companies, often focusing on specific scientific or technological fields. This description aligns precisely with the function of science parks.

when the actions that preceded the outcome have a significant impact on the final results. In such cases, the outcomes are frequently impossible to replicate.

Answer: path dependency

Path dependency describes a situation where past events or decisions significantly constrain or determine future outcomes, making it difficult to deviate from an established course. The initial choices, even if suboptimal, create a 'path' that becomes increasingly entrenched, often making the final results unique and difficult to replicate because they are a product of that specific historical sequence.

an innovation that enhances previously acquired information and abilities. Depending on whose perspective is used, an invention may be competence-enhancing or competence-destroying. Innovations can help some businesses become more competent while hurting other businesses become less competent.

Answer: competence enhancing innovation

A competence-enhancing innovation builds upon existing knowledge, skills, and infrastructure within a firm or industry, making the existing competencies more valuable or effective. While it can be disruptive to some, it generally leverages and strengthens the core capabilities of established players. The definition explicitly states it 'enhances previously acquired information and abilities.'

the actualization of a concept into a new tool or procedure

Answer: innovation

Innovation is the process of translating an idea or invention into a good or service that creates value or for which customers will pay. It involves the practical application and commercialization of a new concept or method. While 'invention' is the creation of something new, 'innovation' is the act of implementing or actualizing that invention into a usable tool or procedure.

the additional profits a company can get from having a monopoly, such as the capacity to reduce costs through stronger supplier negotiating power.

Answer: monopoly rents

Monopoly rents refer to the excess profits earned by a firm that possesses significant market power, often due to a monopoly or near-monopoly position. This market power allows them to charge higher prices or negotiate better terms with suppliers, leading to profits above what would be achievable in a perfectly competitive market. The description directly explains this concept.

research intended to advance information for a particular use or need

Answer: applied research

Applied research is a systematic investigation undertaken to acquire new knowledge with a specific practical aim or objective. Unlike basic (or pure) research, which seeks to expand knowledge for its own sake, applied research is directed towards solving a particular problem or developing a specific product or process. The definition clearly states 'intended to advance information for a particular use or need.'

when there are more users of a good that is the same or similar to the user, the value of the good to the user grows

Answer: network externalities

Network externalities (also known as network effects) occur when the value of a product or service increases for existing users as more people use it. For example, a social media platform becomes more valuable to its users as more friends and contacts join. The question's description directly matches this phenomenon, where the value grows with the number of users.

a secure network that only authorized users can access. similar to the internet, but solely within a company.

Answer: intranet

An intranet is a private computer network that uses Internet protocols and network connectivity to securely share information and operational systems within an organization. It is essentially a private version of the internet, accessible only to authorized employees, used for internal communication, collaboration, and resource sharing. This definition perfectly describes an intranet.

when various stages of the creation of a new product happen at once.

Answer: parallel development process

A parallel development process, also known as concurrent engineering, involves performing different stages of product development simultaneously rather than sequentially. This approach aims to reduce overall development time and costs by allowing teams to work on multiple aspects of a project concurrently, fostering better communication and integration between stages.

the first businesses to sell in a new sector of goods or services

Answer: first movers

First movers are the initial companies to introduce a new product, service, or business model into a market. They are pioneers who create a new industry or segment, often gaining significant advantages such as brand recognition, customer loyalty, and proprietary technology, though they also bear the risks associated with market creation.

how a technology develops over its lifetime. This path could be its rate of performance improvement, its rate of dissemination, or any other shift in interest.

Answer: technology trajectory

A technology trajectory describes the path or direction along which a technology evolves over time. This can encompass its rate of performance improvement, its adoption and diffusion rate, or other significant changes in its characteristics or market interest. It essentially maps the progression and development of a technology throughout its lifecycle.