Technology & Innovation Management Flashcards

Which of the following is a key characteristic of 'architectural innovation' as defined by Henderson and Clark?

Answer: Reconfigures an established system's linkages while the core components may remain unchanged

Architectural innovation changes how components are integrated and linked, often undermining incumbents who have optimized around the old architecture.

A 'crossing the chasm' strategy for high-tech products recommends that firms initially target:

Answer: A narrow, specific beachhead segment to gain a foothold before scaling

Moore's 'Crossing the Chasm' advises targeting a specific vertical niche (beachhead) to generate references and cash flow needed to enter mainstream markets.

In technology portfolio management, what does the 'emerging' quadrant typically signal in a technology map?

Answer: High-impact technologies still in early stages requiring monitoring and selective investment

Emerging technologies show high future potential but low current maturity, warranting exploratory investment and monitoring rather than full commitment.

Frugal innovation (also called 'jugaad') primarily aims to:

Answer: Develop good-enough products at dramatically lower cost to serve price-sensitive or resource-constrained markets

Frugal innovation strips away non-essential features to create affordable, robust solutions suitable for emerging markets or cost-conscious customers.

In a technology licensing negotiation, the term 'royalty stacking' describes a problem where:

Answer: A licensee pays multiple royalties to different patent holders for a single product, raising total costs significantly

Royalty stacking occurs when a product infringes multiple separate patents, requiring royalty payments to each holder, which can make commercialization economically unviable.

Which R&D metric is most directly aligned with measuring innovation output rather than innovation input?

Answer: Number of new products launched per year

New products launched measures output (results of innovation activity), while R&D spend, headcount, and budget growth are all input metrics.

The 'innovator's dilemma' most directly explains why large incumbents fail to adopt disruptive technologies because:

Answer: Rational resource allocation to their best current customers makes them ignore low-margin emerging markets

Christensen showed that incumbents rationally invest in sustaining innovations for profitable customers, leaving disruptive low-end markets open for new entrants.