5.2 Research and development HL

Research and development is unlikely to include which of the following? 

•  Test marketing 
• Prototypes 
• Position mapping 
• Market research 

One purpose of spending huge amounts of money on research and development is 

• To increase earning potential of the business in the future 
• To gain rights to patents, trademarks or copyrights 
•  To eliminate competition 
• To diversify the activities of a business 

Research and development expenditure is often used as a barrier to entry by large businesses that dominate the market. What are these firms known as? 

•  Sunset businesses 
• Sunrise businesses
•  Market leaders 
• Process innovators 

Innovation is best described as 

•  The development of new ideas and working practices
•  The commercial development and use of an idea or process that appeals to consumers 
• New products that are launched on the market 
•  Market-orientated processes 

Benefits of innovation do not include 

• Growth opportunities
• Productivity gains
• Brand switching 
• Reduced product failure rate 

Which of the following is the least likely long-term benefit to an innovative firm?

• Growth opportunities 
• Establishing a unique selling point 
• Establishing brand loyalty 
•  Improved competitiveness 

Which of the following is not a constraint of innovation? 

•  High R&D costs 
• High failure rate 
• Budgetary constraints 
•  Competitiveness 

 Which type of innovation refers to changes in the way that production takes place, i.e. how production takes place? 

• Process innovation 
• Product innovation 
• Positioning innovation 
•  Paradigm innovation 

Drastic and extensive innovations that involve high risks to a business are known as 

• Process innovation 
• Product innovation 
• Positioning innovation 
• Paradigm innovation 

Which of the following would not qualify to be protected by copyrights? 

• Radio broadcasts 
• Hollywood movies 
•  Medicines
• Photographs