1) Technology, R & D, and Efficiency. a) Thoroughly and completely explain Inven
ID: 1209023 • Letter: 1
Question
1) Technology, R & D, and Efficiency.
a) Thoroughly and completely explain Invention
i) Distinguish between invention as a process and invention as a result.
(1) Should be pretty straight forward.
ii) We live on a planet with finite resources which makes continued economic growth difficult to maintain. If we are seeing economic growth rates flatten out, please explain how invention might be impacted by a slow growth /no growth economy, and what can we do about this problem? Be specific.
(1) Discuss invention as a process and compare that to invention as a result. Give 2 examples of each, and discuss how each might be affected by a slow growth / no growth economy.
b) Explain Innovation.
i) What is it?
ii) For each of the typical types of innovation:
(1) Provide 2 examples of each (that were not included in the slides or audio) and explain why these are good examples of those types of innovation.
(2) Explain how these two types of innovation were used to drive up profits.
(a) Discuss the 2 key factors required to drive up profits – drive down costs and drive up revenues.
(b) Might want to include how new products gain customer acceptance, including the importance of the relationship between price and utility.
(c) Process innovation is often used to get leverage on lowering costs, might want to discuss how impacts total product, ATC, and profit.
(d) Some of the process innovations of Wal-Mart might be good to look into.
iii) Explain how our ability to do process and product innovation might be impacted by a slow growth / no growth economy, and what we can do about the problem.
(1) How is innovation impacted during times of slow growth or no growth?
(2) May have to consider what is required to actually deliver innovations to the market.
c) Explain Diffusion.
i) Define it,
ii) Explain how it works,
iii) Give 3 examples involving firms that have lead diffusion of some innovation and why these represent good examples of diffusion,
iv) Discuss how diffusion might be affected by a show growth/no growth economy.
(1) Since diffusion is not free, how might it be impacted by economies that are not growing or only growing slowly?
Explanation / Answer
How is innovation impacted during times of slow growth or no growth?
Economies can generate growth by adding more stuff: more workers, investment, consumption and education. But sustained increases in output per person, which are necessary to raise incomes and welfare, by innovating things. If the rate at which we innovate, and spread that innovation, slows down, so too, other things being equal, will our growth rate.
Innovation increase productivity as it provides new tools and methods to generate goods or an improved version of methods.
(2) May have to consider what is required to actually deliver innovations to the market.
There should be focused goals which are required to deliver innovations to the market. Society is willing to opt for those new methods and products for their betterment.
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