What Is Open Innovation

question 17

Multiple Choice

What is open innovation?

• A)Innovation that turns to sources of ideas and support outside of an organisation, openly sharing the trials and rewards of innovation as opposed to protecting it
• B)Any innovation that staff and employees develop openly within the organisation
• C)A new term for opening a broad range of creative ideas
• D)Innovation started by the manager and opened by the employees

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Definitions:

Economic Losses

Financial losses incurred by businesses or economies, often due to inefficiencies, misallocation of resources, or external factors.

Barriers to Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter a market, including high initial costs, licensing requirements, and strong brand loyalty among consumers.

Competitive Price-searcher

A market structure where firms set their prices and output levels to compete for consumers in a market with many sellers and product differentiation.

Long-run Equilibrium

A state in which all aspects of the market, including supply, demand, and price, are stabilized over time, allowing for full adjustment to any economic changes.