Innovation (AQA A Level Business): Flashcards
Exam code: 7132
1/230Still learning
Know0
Define innovation.
Was this flashcard helpful?
Cards in this collection (23)
Define innovation.
Innovation means introducing something new, or significantly improving something that already exists, within a business.
What is the difference between product innovation and process innovation?
Product innovation is new or improved goods and services offered to customers. Process innovation is new or improved ways of producing, delivering or organising a business's operations.
True or False?
Innovation and invention mean the same thing.
False.
Invention means creating something entirely new. Innovation includes applying, improving or commercialising an idea, whether it is original or builds on existing technology.
Why is innovation valuable to a business?
Innovation can create new revenue streams, open access to new markets and reduce costs when applied to processes. It also builds long-term resilience, as businesses that fail to innovate risk becoming outdated.
What are the main challenges of innovation?
Innovation often involves high costs, a high risk of failure and long development times. It can also meet resistance to change and pull resources away from existing operations.
Competitors may copy successful innovations unless they are protected, for example through _____.
Competitors may copy successful innovations unless they are protected, for example through patents.
Define research and development (R&D).
Research and development (R&D) is the systematic investigation and experimentation a business carries out to develop new or improved products, processes or technologies.
True or False?
Research and development can give a business a lasting competitive advantage.
True.
R&D can lead to breakthrough products or processes that keep a business ahead of rivals. It also builds specialist knowledge and expertise within the business over time.
Define talent acquisition and retention.
Talent acquisition and retention means attracting and keeping skilled, creative employees who can generate and develop new ideas.
How does retaining experienced staff support innovation?
Retaining experienced staff keeps valuable knowledge in the business. It also reduces the risk of ideas leaving with employees.
Define cross-functional teams.
Cross-functional teams bring together employees from different departments, such as marketing, finance and operations, to work on projects together.
What are the disadvantages of using cross-functional teams to innovate?
They can create conflict if members have different priorities or working styles. Removing staff from their usual department can also reduce productivity elsewhere.
Encouraging employees to act like entrepreneurs within a business, developing new ideas as if running their own venture, is known as ______________.
Encouraging employees to act like entrepreneurs within a business, developing new ideas as if running their own venture, is known as intrapreneurship.
Define intellectual property (IP).
Intellectual property (IP) refers to creations of the mind, such as inventions, designs, brand names and creative works, that are legally owned by the person or business that created them.
Why do businesses protect their intellectual property?
Protection prevents competitors copying a business's ideas, products or branding without permission. It also increases the value of the business and encourages continued investment in innovation.
Define patent.
A patent is a legal right that protects a new invention, giving the owner the exclusive right to make, use or sell it for a set period in exchange for making public how it works.
True or False?
Once granted, a patent protects an invention from competitors forever.
False.
Patents only last for a limited period, after which competitors can freely copy the invention.
How can a patent create an additional source of revenue for a business?
The business can license the patent to others in exchange for payment.
Why might a small business find applying for a patent difficult?
Applying for a patent can be expensive and time-consuming, which is a particular burden for small businesses.
Define copyright.
Copyright is a legal right that automatically protects original creative works, such as writing, music, art, film and software code, preventing others from copying, distributing or using them without permission.
Copyright only protects the specific ________ of an idea, not the underlying idea itself.
Copyright only protects the specific expression of an idea, not the underlying idea itself.
How long does copyright last in the UK?
In the UK, copyright lasts for the creator's lifetime plus a further 70 years.
True or False?
Copyright can be difficult and costly to enforce when work is copied online or overseas.
True.
Enforcing copyright online or overseas can be difficult and costly. Proving that copying took place, rather than independent creation, can also be legally complex.
Sign up to unlock flashcards
or