CME Innovation & Entrepreneurship Flashcards
6 cards from real CME practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CME Innovation & Entrepreneurship flashcards as text
A company analyzing its innovation pipeline uses the concept of an 'innovation funnel.' What does this represent?
Answer: The process of filtering many ideas down to a few viable innovations for launch
An innovation funnel illustrates how a large number of initial ideas are progressively filtered through development stages, with only the most promising reaching market launch.
What is the primary purpose of a 'stage-gate' process in innovation management?
Answer: To provide structured go/no-go decision points between development phases
The stage-gate process divides innovation projects into stages separated by gates where management reviews progress and decides whether to continue, modify, or kill the project.
Which concept describes an organization's ability to acquire external knowledge and integrate it with internal capabilities to drive innovation?
Answer: Absorptive Capacity
Absorptive capacity, coined by Cohen and Levinthal, refers to a firm's ability to recognize, assimilate, and apply new external knowledge to create commercial value.
In entrepreneurial finance, what is a 'Series A' funding round?
Answer: The first round of venture capital after early seed funding, used to scale the business
A Series A round is typically the first significant venture capital investment after seed funding, used to optimize the product and scale operations.
What framework, used in innovation strategy, divides activities into 'core,' 'adjacent,' and 'transformational' categories?
Answer: The Three Horizons Framework
The Three Horizons Framework (McKinsey) categorizes innovation investments: Horizon 1 (core business), Horizon 2 (adjacent growth), and Horizon 3 (transformational bets).
A manager wants to protect a company's unique innovation from competitors. Which legal mechanism protects a novel invention's design or process for a limited period?
Answer: Patent
A patent grants the inventor exclusive rights to make, use, or sell an invention for typically 20 years, preventing competitors from copying the protected innovation.