Session 2 - Patterns in Innovative Activity

what is the main objective of studying patterns in innovative activities?

to understand that innovation follows structured patterns across different levels

at which levels can patterns of innovation be observed?

economic, technological, product, market

why are innovation patterns important for firms?

they help firms anticipate change and make strategic decisions

which statement best describes technological change?

it is cumulative, evolutionary, but also occurs in bursts and jumps

what does “cumulative'“ technological change mean?

new technologies build on previous knowledge

what does “evolutionary” technological change imply?

gradual improvements over time

which statement is TRUE about technological development?

it can occur in bursts and discontinuities

what characterizes a technological revolution?

radical innovations creating new techno-economic paradigms

what is a techno-economic paradigm?

a dominant technological system shaping the economy

what was a major consequence of the printing press?

mass education and spread of knowledge

which of the following is associated with the printing press?

mass education and reformation

what was the main impact of the Spinning Jenny?

10x productivity increase in textile production

which consequence is linked to the Spinning Jenny?

industrialization and social disruption

why is the steam engine considered a “General Purpose Technology”?

it enables multiple industries and innovations

which of the following is NOT enabled by the steam engine?

internet communication

who were the main institutional innovators behind the internet?

governments and universities

what was the initial motivation behind internet development?

defense and scientific research

what are Kondratiev waves?

long economic cycles driven by major technologies (50 years)

what drives each Kondratiev wave?

new pervasive technologies

which of the following is an example of a technological wave?

electricity or digital technologies

what is a direct consequence of a new techno-economic paradigm?

winners and losers among firms and countries

which of the following is NOT typically affected by new paradigms?

weather patterns

what determines competitiveness in modern economies?

knowledge, creativity and innovation

which statement BEST reflects patterns of innovation at the economic level?

innovation follows cumulative and evolutionary patterns but occurs in discontinuous bursts

which combination correctly links innovation and its impact?

spinning jenny → industrialization and social disruption

which statement BEST describes the S-curve of technological performance?

performance follows an S-shaped pattern with phases of acceleration and slowdown

which sequence correctly represents the stages of the S-curve?

emergence → rapid growth → declining improvement → maturity

during which stage are improvements the fastest?

rapid growth

which stage is characterized by approaching the technological limit?

maturity

what is the key challenge in switching technologies?

new technologies initially perform worse than existing ones but may surpass them later

which statement BEST reflects the switching dilemma?

firms must decide when a new inferior technology will outperform the old one

what does the “sailing ship phenomenon” describe?

final performance improvements of old technology when facing new competition

which example illustrates the sailing ship phenomenon?

sailing ships improving before being replaced by steamships

why does the sailing ship phenomenon occur?

firms invest more in old technology when threatened by new competition

which statement is TRUE about S-curves?

they are simplified models that depend on assumptions

what is a key limitation of S-curves?

their shape depends on the chosen input variable (eg time vs R&D)

why are S-curves still useful despite limitations

they help managers think about technological transitions

which mistake can S-curves help avoid?

overestimating current dominant technology

what is a dominant design?

a standardized product that becomes widely adopted in an industry

what typically happens after a dominant design emerges?

standardization and industry consolidation occur

which example illustrates dominant design?

Ford model T standardization

which phase is characterized by high uncertainty and many designs?

fluid phase

what defines the transitional phase?

emergence of dominant design and focus on process efficiency

what defines the specific phase?

standardized products and price competition

in which phase do entries exceed exists?

Phase 1 (performance)

in which phase does consolidation occur?

Phase 3 (price competition)

why does consolidation occur in Phase 3?

only efficient firms survive intense price competition

what shape describes innovation adoption over time?

S-shaped curve

which group adopts innovation first?

innovators

which group acts as opinion leaders?

early adopters

which group adopts innovation due to peer pressure?

late majority

which group is most resistant to change?

laggards

which combination is CORRECT?

transitional phase → dominant design emerges

which statement BEST connects S-curves and industry evolution?

new technologies may start inferior but eventually surpass existing ones

which combination is CORRECT?

early adopters → opinion leaders

which statement BEST reflects patterns in innovation across levels?

innovation follows structured patterns across technology, products, and markets, but remains uncertain in timing and outcome

according to the lecture, most innovations are:

new combinations of existing technologies

which statement is TRUE about innovation

it often recombines existing technologies into new applications

what defines a General Purpose Technology (GPT)?

a technology with broad applications across many sectors

which of the following is an example of a General Purpose Technology?

Steam engine

what is an important insight about major innovations?

they do no always lead to the greater good

which statement BEST reflects the impact of major innovations?

they can have both positive and negative consequences

Why can the shape of an S-curve be misleading?

It depends on the chosen input variable (e.g., time vs R&D spending)

Which of the following BEST explains differences in S-curve representation?

Different input variables used on the x-axis

Which of the following is a common mistake of established firms?

Overestimating current dominant technology

Why might firms fail to adopt new technologies?

Organizational inertia and rigid structures

What is a risk of linking R&D budgets to current revenues?

Underinvestment in future technologies

Which problem may arise from biased attitudes in firms?

Misinterpretation of market signals

How does the cost of process change evolve over the PLC?

Increases over time

Which type of organizational control is typical in the fluid phase?

Informal and entrepreneurial

Which phase is associated with highly structured organizations?

Specific phase

What does N(t) represent in diffusion models?

Adoption level over time

What determines the growth of adoption in diffusion models?

Individual behavior and social interaction