Choosing Innovation Projects

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Introduction
Sources of Innovation
Types and Patterns of Innovation
Standards Battles and Design Dominance
Timing of Entry
Defining the Organizations Strategic Direction
Choosing Innovation Projects
Collaboration Strategies
Protecting Innovation
Organizing for Innovation
Managing the New Product Development Process
Managing New Product Development Teams
Crafting a Deployment Strategy

All Questions

Question 1

Free

True/False

The allocation of a finite quantity of resources over different possible uses is known as research rationing.

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True

False

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Question 2

Free

True/False

The ratio of R&D expenditures to sales is known as R&D concentration.

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True

False

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Question 3

Free

True/False

Qualitative methods of analyzing new projects usually entail converting projects into some estimate of future cash returns from a project.

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True

False

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Question 4

Free

True/False

Discounted cash flow methods typically do not take into account the payback period.

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True

False

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Question 5

Free

True/False

Upon calculation of its costs and cash inflows,if the net present value (NPV) of a project is greater then zero then it generates wealth.

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True

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Question 6

True/False

According to the net present value method of discounted cash flow analysis,the time required to break even on a project using discounted cash flows is known as period of return.

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True

False

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Question 7

True/False

The discounted rate that makes the net present value of the investment maximize is called the internal rate of return.

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True

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Question 8

True/False

Discounted cash flow estimates of a project are only as accurate as the original estimates of the profits from a technology.

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True

False

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Question 9

True/False

Standard discounted cash flow analysis has the potential to severely undervalue a development project's contribution to the firm.

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True

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Question 10

True/False

Calculating the internal rate of return of a project typically must be done by trial and error.

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Question 11

True/False

From a real options perspective,the value of a call stock option is zero as long as the price of the stock is more than the exercise price.

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True

False

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Question 12

True/False

From a real options perspective,the exercise price associated with commercializing a new technology would include the cost of manufacturing,marketing,and distributing the technology.

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True

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Question 13

True/False

While the value of a stock is independent of the call holder's behavior,the value of an R&D investment is not independent of the investor's behavior.

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Question 14

True/False

The investor is an active driver of the value of the investment.

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True

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Question 15

True/False

Breakthrough projects involve development of products that incorporate revolutionary new technologies in a commercialized application.

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True

False

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Question 16

True/False

Derivative projects offer fundamental improvements in the cost,quality,and performance of a technology over preceding generations.

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True

False

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Question 17

True/False

Ferguson TechnoWorks made the strategic decision to invest heavily in the development of derivative projects.This is likely to make the returns on its R&D look good only in the short run.

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True

False

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Question 18

True/False

The most common use of conjoint analysis is to assess the relative importance of different product attributes to customers.

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Question 19

Multiple Choice

_____ refers to the allocation of a finite quantity of resources over different possible uses.

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Systematic allotment

Corporate funding

Organizational appropriation

Capital rationing

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Question 20

Multiple Choice

Which of the following is true of quantitative methods of analyzing new projects,particularly in rapidly changing environments?

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They enable managers to statistically compare projects.

Their accuracy is unquestionable.

Discounted cash flow methods and real options are the least recommended quantitative methods.

They are particularly accurate in highly uncertain or rapidly changing environments.

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