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Innovation and Entrepreneurship Principles
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Innovation and Entrepreneurship Principles
Innovation and Entrepreneurship Principles
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1
Question
How does the author characterize innovation and entrepreneurship as a professional discipline?
Page 6
Answer
The author presents these concepts as a systematic practice based on organized behavior and specific actions rather than mysterious personality traits or flashes of genius.
2
Question
What are the three main components of the book's framework for discussing development?
Page 6
Answer
The framework consists of the Practice of Innovation, the Practice of Entrepreneurship, and Entrepreneurial Strategies.
3
Question
In what way is knowledge utilized within the practice of entrepreneurship?
Page 7
Answer
Knowledge is treated as a means to an end, where the specific goals of the practice define what constitutes useful knowledge.
4
Question
What fundamental shift occurred in the United States economy between 1965 and 1985?
Page 10
Answer
The economy transitioned from a 'managerial' focus dominated by large institutions to an 'entrepreneurial' economy driven by job creation in small and medium-sized ventures.
5
Question
How did the American economy's performance in job creation compare to Western Europe from 1970 to 1984?
Page 10
Answer
While the United States created millions of new jobs, Western Europe actually lost 3 to 4 million jobs during the same period.
6
Question
Which institutions provided almost all new jobs in the American economy for the quarter-century following World War II?
Page 11
Answer
Job creation centered on large institutions including the Fortune 500, government entities, super-large universities, and growing hospitals.
7
Question
Why did many experts believe the US would face high unemployment in the 1970s and 1980s?
Page 11
Answer
Analysts expected the economy to be unable to provide enough jobs for the 'baby boom' generation reaching working age.
8
Question
What quantitative impact has high technology had on American job creation since 1965?
Page 12
Answer
High technology contributed only 5 or 6 million of the 40 million-plus jobs created, which was roughly equal to the jobs lost in traditional heavy industry.
9
Question
How did the model for technology change after World War II?
Page 12
Answer
The model shifted from a mechanical one based on energy and mechanical events to a biological model organized around information.
10
Question
What is the qualitative role of high technology in the entrepreneurial economy?
Page 13
Answer
High tech acts as a 'ratio cognoscendi,' providing the excitement, vision, and market receptivity that stimulate entrepreneurship across all sectors.
11
Question
What is the 'fifty-year Kondratieff cycle' based upon?
Page 13
Answer
The cycle is based on the inherent dynamics of technology, asserting that long technological waves crest every fifty years followed by periods of stagnation.
12
Question
Why did traditional growth industries like steel and automobiles collapse suddenly in the 1970s?
Page 14
Answer
These industries were thoroughly mature and corroding from within, making them vulnerable to the external shocks of the 1973 and 1979 oil crises.
13
Question
Why does the author consider the Kondratieff theory 'disproven and discredited' in the American context?
Page 15
Answer
The theory cannot explain the creation of 40 million new jobs during a period it predicted would be a time of long-term stagnation.
14
Question
What is the primary commonality among growth enterprises defying Kondratieff stagnation?
Page 20
Answer
These enterprises all apply 'entrepreneurial management,' which serves as a new technology for organizing human work.
15
Question
How did McDonald's apply management as a technology to a mundane service business?
Page 26
Answer
McDonald's redesigned the end product and entire process, invented automated tools for consistency, and standardized service quality based on customer value.
16
Question
How does J.B. Say define the primary function of an entrepreneur?
Page 30
Answer
Say defined the entrepreneur as one who shifts economic resources from areas of lower productivity into areas of higher productivity and yield.
17
Question
What characterizes the 'Fourth Sector' mentioned as an area of emerging entrepreneurship?
Page 19
Answer
The Fourth Sector consists of public-private partnerships where governments provide funding and standards while private businesses compete to deliver services.
18
Question
Why does high-tech development often follow a 'rags to riches and back to rags' pattern?
Page 21
Answer
Many high-tech firms operate as inventors and speculators rather than managed innovators, leading to rapid expansion followed by sudden shakeouts.
19
Question
What is the 'Practice of Innovation' as defined in Part I of the book?
Page 28
Answer
It is the purposeful search for innovative opportunities and the application of principles to develop ideas into viable businesses.
20
Question
What entrepreneurial shift allowed a Midwestern foundry to outperform low-cost foreign competitors?
Page 31
Answer
The foundry converted the 'art' of precision casting into a scientific, computer-controlled flow process focused on a specific market niche.
21
Question
What characterizes the shift toward 'deinstitutionalizing' in the American health-care field?
Page 19
Answer
The trend has moved away from keeping patients in centralized hospitals and toward using 'freestanding' diagnostic, surgical, and maternity facilities.
22
Question
Why did many university faculties and hospital administrators historically reject the label of 'management'?
Page 25
Answer
They believed management was exclusively for 'business people' and did not apply to their specific service-oriented institutions.
23
Question
How does the 'biological model' of technology differ from the 'mechanical model' in terms of organization?
Page 13
Answer
The biological model organizes processes around information, whereas the mechanical model organizes them around physical energy like steam or internal combustion.
24
Question
Which specific economic group was the primary source of job creation in the US from 1970 to 1983?
Page 18
Answer
The primary job creators were mid-sized growth companies with revenues between $25 million and $1 billion.
25
Question
How did high technology affect the perception of small employers among young, trained professionals?
Page 13
Answer
The 'mystique' of high tech made talented individuals willing to work for small, unknown firms instead of large, established corporations.
26
Question
What is the relationship between demographics and the entrepreneurial economy in the United States?
Page 16
Answer
Demographic shifts, such as the 'baby boom' and the entry of women into the workforce, necessitated the massive job growth that fueled entrepreneurial expansion.
27
Question
What historical role did Georg Siemens play in the development of entrepreneurial management?
Page 21
Answer
Siemens founded the Deutsche Bank in 1870 with the mission of finding, financing, and enforcing disciplined management on entrepreneurs.
28
Question
How did the 1980s 'intelligent investor' differ from very wealthy investors in the financial services case?
Page 18
Answer
Intelligent investors were well-to-do professionals or farmers who sought to save surplus income without expecting to become rich through investment.
29
Question
What does the author suggest about the future of the American postal service through entrepreneurship?
Page 20
Answer
The author suggests that saving the service might require contracting out first-class mail delivery to the 'Fourth Sector' through competitive bids.
30
Question
What is the primary difference between an entrepreneur and a standard new business owner?
Page 30
Answer
An entrepreneur creates something new and transmutes values, whereas many new business owners simply take a risk on a model that has been done before.