MEM Technology & Innovation Management 2 — Questions and Answers
Question 1: Which concept describes a situation where an established technology is displaced by a simpler, cheaper alternative that initially underperforms on traditional metrics?
- Sustaining innovation
- Disruptive innovation (Correct answer)
- Incremental innovation
- Architectural innovation
Correct answer: Disruptive innovation
Disruptive innovation, per Clayton Christensen, starts by serving overlooked segments with simpler, cheaper products before eventually displacing incumbents.
Question 2: A firm's 'absorptive capacity' refers to its ability to:
- Absorb financial losses during product launch
- Recognize, assimilate, and apply external knowledge (Correct answer)
- Expand market share through acquisitions
- Manage internal R&D headcount growth
Correct answer: Recognize, assimilate, and apply external knowledge
Absorptive capacity (Cohen & Levinthal, 1990) is the firm's ability to identify, assimilate, and exploit externally generated knowledge for commercial ends.
Question 3: In the context of open innovation, which mechanism allows a firm to monetize unused intellectual property through licensing or spin-offs?
- Inbound open innovation
- Outbound open innovation (Correct answer)
- Coupled open innovation
- Closed R&D pipeline
Correct answer: Outbound open innovation
Outbound open innovation involves commercializing internal ideas externally via licensing, joint ventures, or spin-offs.
Question 4: A technology S-curve is used primarily to:
- Forecast R&D budget needs by team size
- Track performance improvement of a technology over time relative to effort invested (Correct answer)
- Map competitor pricing strategies
- Calculate return on capital employed
Correct answer: Track performance improvement of a technology over time relative to effort invested
The S-curve shows slow initial improvement, rapid growth, then diminishing returns as a technology matures, signaling when to invest in the next paradigm.
Question 5: Which stage of the technology readiness level (TRL) scale represents a system that has been tested and validated in an operational environment?
- TRL 3
- TRL 5
- TRL 7
- TRL 9 (Correct answer)
Correct answer: TRL 9
TRL 9 signifies that the technology has been flight-proven or operationally proven in a real-world environment, the highest maturity level.
Question 6: The 'dominant design' concept in technology management suggests that:
- Firms should always choose the most complex technical design
- A single design configuration eventually dominates a market, after which competition shifts to process efficiency (Correct answer)
- Dominant firms always create the best designs
- Design standards are set by government regulation
Correct answer: A single design configuration eventually dominates a market, after which competition shifts to process efficiency
After a dominant design emerges (e.g., the QWERTY keyboard or VHS format), competitive advantage shifts from product innovation to process innovation and cost reduction.
Question 7: Which framework helps managers assess whether to 'make, buy, or ally' for a given technology by evaluating strategic importance and competitive position?
- PESTLE analysis
- The technology sourcing framework (Pisano) (Correct answer)
- BCG growth-share matrix
- Porter's Five Forces
Correct answer: The technology sourcing framework (Pisano)
Pisano's technology sourcing framework evaluates the strategic importance of a technology and the firm's relative competence to guide make-buy-ally decisions.
MEM Technology & Innovation Management 2
Which concept describes a situation where an established technology is displaced by a simpler, cheaper alternative that initially underperforms on traditional metrics?