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level: Test QS

Questions and Answers List

level questions: Test QS

Question	Answer
An example of an innovation that increases fixed costs and reduces the marginal costs is: - a robot - a 3D printer - cheaper machinery that uses the same amount of labour as the older (more expensive) one - none of the above	a robot (less spendings on labor)
In the Pavitt (1984) taxonomy, specialised supplier industries are characterised by: o the importance of tacit knowledge o high propensity to patent o mainly process innovation o none of the above	o the importance of tacit knowledge
Which of of these elements are NOT features of patents? o time-limited monopoly right o measure of tacit knowledge o measure of invention o a public record	o measure of tacit knowledge
The enforcement of patents in the United Sates is based on: o Opposition system o Assessing the scope of patent rights o Handled by civil courts o Handled privately through the court system	o Handled privately through the court system
An invention may not become an innovation o because it never commercialised o because the inventor is unable to combine to combine different types of knowledge, capabilities, skills and resources o because some vital inputs or complementary factors could be not be available o all of the above	o all of the above
A capital-intensive process, with reduced marginal costs and increased fixed costs, is more efficient than labour intensive process for: o Low scale of production o low quality of capital o high quality of raw materials o high scale of production	o high scale of production
According to the Arrow Model, which one among the following agents has the smallest incentive to innovate: o Competitive firm o Social Planner/Policy maker o Oligopolistic firm o Monopolistic firm	o Monopolistic firm
Product innovation can be studied by means of: o cost curves o characteristics approach o economies of scale approach o productivity approach	o characteristics approach
The power law distribution in innovation studies suggests that o the vast majority of returns come from a large percentage of innovative investments o the vast majority of returns come from a small percentage of innovative investments o a small fraction of the returns come from a large percentage of innovative investments o a small fraction of the returns come from a small percentage of innovative investments	o the vast majority of returns come from a small percentage of innovative investments
According to Schumpeter and Kline and Rosenberg (1986), firms that imitate existing products could be also innovative firms: o No, they only imitate already existing products o Yes, if they acquire new machinery o Yes, if they have to adapt the already existing product in a new context o Yes, if they acquire robots and/or artificial intelligence	o Yes, if they have to adapt the already existing product in a new context
According to Community Innovation Survey which one among the following elements are market sources of innovation: o Suppliers o Intra-mural R&D o Learning by doing o Universities and Government	o Suppliers
The Employment Effect in the Skill-biased Technological Change hypothesis means that: o The technological change rate is lower than the growth rate of skilled workers supply o an insufficient number of qualified workers is a constraint for innovation o qualified workers are abundant on the labour market and favour innovation o there are shortages of low-skilled workers in the labour market	o an insufficient number of qualified workers is a constraint for innovation
Analytical knowledge bases are characterised by: o interactive learning o the importance of scientific laws o inductive method o all of the above	o the importance of scientific laws
In the Pavitt (1984) taxonomy, examples of supplier-dominated industries are: o aerospace o textile o mechanical engineering o none of the above	o textile
According to Kenneth Arrow, knowledge is a public good because o it needs to be provided by the State o it is non-rival in consumption o it is rival in consumption o none of the above	o it is non-rival in consumption
An invention is considered an innovation when o it is an incremental improvement o it is a radical change in the nature of product, services and processes o a new idea is successfully applied by organisations o all of the above	o a new idea is successfully applied by organisations
An example of an innovation that reduces the marginal costs without affecting the fixed cost is: o a robot o a 3D printer o learning by doing o none of the above	o learning by doing
Schumper consider innovation as combination of existing resources leading to o new products o new methods of production o new sources of supply o all of the above	o all of the above
According to Gilbert and Shapiro (1990) o broad and short patents are optimal o broad and long patents are optimal o narrow and long patents are optimal o narrow and short patents are optimal	o narrow and long patents are optimal
Who said that "innovation offers the carrot of spectacular reward or the stick of destitution" o Joseph Shumpeter o Adam Smith o Karl Marx o none of the above	o Joseph Shumpeter
According to Gallini (1992) o broad and short patents are optimal o broad and long patents are optimal o narrow and long patents are optimal o narrow and short patents are optimal	o broad and short patents are optimal
An example of an innovation that reduces fixed costs without changing marginal costs is: o a robot o a 3D printer o learning by doing o none of the above	o none of the above
Who said that division of labour allows specialisation in specific manufacturing processes o Alfred Marshall o Adam Smith o Karl Marx o none of the above	o Adam Smith
Which one among the following elements is NOT considered organisational innovation: o Corporate governance o Managing relationships with suppliers o Staff recruitment o Product Placement	o Product Placement
In the Klepper’s Model, the incumbents in the mature stage will be able to stay in the market if: o they invest in R&D for product innovation and accumulate expertise o they invest in R&D and advertising for product innovation o they invest in R&D for process innovation to reduce production costs o they only invest money in advertising	o they invest in R&D for process innovation to reduce production costs
According to the evolutionary theory, the firm’s behaviour is characterised by: o Strong rationality o Adaptive behaviour and strong rationality o Profit Maximisation o Adaptive behaviour and bounded rationality	o Adaptive behaviour and strong rationality
Schumpter Mark I innovative regimes are characterised by: o high-technological opportunities o low appropriability o high rates of entry o all of the above	o all of the above
The Gibrat's Law predicts that o small firms grow faster o large firms grow faster o firm size follows a random walk o none of the above	o none of the above
According to the Frascati Manual which one among the following elements are not included in R&D: o Basic Research o Experimental Development o Market Research o Applied Research	o Market Research
An example of an innovation that reduces fixed costs without changing marginal costs is: o a robot o a 3D printer o cheaper machinery that uses the same amount of labour as the older (more expensive) one o none of the above	o cheaper machinery that uses the same amount of labour as the older (more expensive) one
The chain-link model o conceptualises innovation as a process from basic science to manufacturing and sales o conceptualises innovation as a process initiated by market needs o conceptualises innovation in terms of interaction between market opportunities and the firm's knowledge base and capabilities o none of the above	o conceptualises innovation in terms of interaction between market opportunities and the firm's knowledge base and capabilities
In the Pavitt (1984) taxonomy, science-based industries are characterised by: o the importance of tacit knowledge o high propensity to patent o mainly process innovation o none of the above	o high propensity to patent
Gross Domestic Expenditure in R&D (GERD) is larger than Business Enterprise Expenditure in R&D (BERD): o No, the opposite holds o Yes, because GERD includes business and government expenditure o No, because BERD includes business and government expenditure o Yes, because GERD includes business, government, education and private no-profit expenditure	o Yes, because GERD includes business, government, education and private no-profit expenditure
According to the CIS, product innovation o needs to be patented o cannot be patented o can be new to the firm but not new to the market o needs to be new to the market	o can be new to the firm but not new to the market
Who said that innovation is not just the prerogative of the producer but can be an action on the part of the consumer o Alfred Marshall o Adam Smith o Karl Marx o none of the above	o Alfred Marshall