4. Research shows that across firms, R&D intensity and frequency of new product introductions is positively
correlated with profitability
[See p.244]
a. T
*b. F
5. In relation to innovation, the term “regime of appropriability” describes the conditions which influence how the
returns to innovation are distributed between the innovator and other parties
[See p.245]
*a. T
b. F
6. The ability of an innovating firm to appropriation of returns to its innovation is independent of its ability to
establish property rights in the innovation
[See p.246]
a. T
*b. F
7. Empirical research shows that for both product and process innovations, patents are more effective at protecting
innovation than secrecy.
[See p.249]
a. T
*b. F
8. The more an invention is embedded within a complex, multifunctional product, the greater the share of the value
that is appropriated by the suppliers of complementary resources.
[See p.228]
*a. T
b. F
9. Across most industries patents offer the greater protection to product innovations than to process innovations.
,[See p.249]
*a. T
b. F
10. ‘Freedom to design’ refers to firms’ ability to use each other’s patents through a comprehensive cross licensing
agreement
[See pp.250-251]
*a. T
b. F
11. The main advantage of licensing as a means of exploiting an innovation is that the innovator can profit from the
innovation without the need to invest in the complementary resources and capabilities required for
commercialization
[See p.251]
*a. T
b. F
12. The best strategy for exploiting an innovation depends on two major factors: first, the strength of the firm’s
intellectual property in the innovation and, second, the resources and capabilities available to the firm.
[See p.250]
*a. T
b. F
13. Being the leader in introducing an innovation to the market is usually better than being a follower.
[See pp.252-253]
a. T
*b. F
14. A standard is a format or interface that allows interoperability.
[See p.255]
*a. T
b. F
, 15. Network externalities exist when the value of a product to an individual depends on the number of other users.
[See p.257]
*a. T
b. F
16. The network externalities that support EBay’s dominance of the market online auctions are primarily the result
of the availability of complementary products and services.
[See p.257]
a. T
*b. F
17. In the markets for digital products, “platforms”—the interfaces within two-sided markets are typically based
upon operating systems.
[See p. 258]
*a. T
b. F
18. A shopping mall provides an interface between two types of customer: the retailers which lease retail stores and
the consumers that shop at these stores. Hence a shopping mall may be regarded as a platform.
[See p.258]
*a. T
b. F
19. Where different technological solutions compete to establish a de facto technical standard, the winner is usually
best technology.
[See p.260]
a. T
*b. F
20. The main lesson learned from the standards wars involving VHS and Betamax in VCRs and between the Apple
Mac and IBM PC in personal computers was that liberal licensing of technology is the key to building market
leadership.
correlated with profitability
[See p.244]
a. T
*b. F
5. In relation to innovation, the term “regime of appropriability” describes the conditions which influence how the
returns to innovation are distributed between the innovator and other parties
[See p.245]
*a. T
b. F
6. The ability of an innovating firm to appropriation of returns to its innovation is independent of its ability to
establish property rights in the innovation
[See p.246]
a. T
*b. F
7. Empirical research shows that for both product and process innovations, patents are more effective at protecting
innovation than secrecy.
[See p.249]
a. T
*b. F
8. The more an invention is embedded within a complex, multifunctional product, the greater the share of the value
that is appropriated by the suppliers of complementary resources.
[See p.228]
*a. T
b. F
9. Across most industries patents offer the greater protection to product innovations than to process innovations.
,[See p.249]
*a. T
b. F
10. ‘Freedom to design’ refers to firms’ ability to use each other’s patents through a comprehensive cross licensing
agreement
[See pp.250-251]
*a. T
b. F
11. The main advantage of licensing as a means of exploiting an innovation is that the innovator can profit from the
innovation without the need to invest in the complementary resources and capabilities required for
commercialization
[See p.251]
*a. T
b. F
12. The best strategy for exploiting an innovation depends on two major factors: first, the strength of the firm’s
intellectual property in the innovation and, second, the resources and capabilities available to the firm.
[See p.250]
*a. T
b. F
13. Being the leader in introducing an innovation to the market is usually better than being a follower.
[See pp.252-253]
a. T
*b. F
14. A standard is a format or interface that allows interoperability.
[See p.255]
*a. T
b. F
, 15. Network externalities exist when the value of a product to an individual depends on the number of other users.
[See p.257]
*a. T
b. F
16. The network externalities that support EBay’s dominance of the market online auctions are primarily the result
of the availability of complementary products and services.
[See p.257]
a. T
*b. F
17. In the markets for digital products, “platforms”—the interfaces within two-sided markets are typically based
upon operating systems.
[See p. 258]
*a. T
b. F
18. A shopping mall provides an interface between two types of customer: the retailers which lease retail stores and
the consumers that shop at these stores. Hence a shopping mall may be regarded as a platform.
[See p.258]
*a. T
b. F
19. Where different technological solutions compete to establish a de facto technical standard, the winner is usually
best technology.
[See p.260]
a. T
*b. F
20. The main lesson learned from the standards wars involving VHS and Betamax in VCRs and between the Apple
Mac and IBM PC in personal computers was that liberal licensing of technology is the key to building market
leadership.
