The Objective of a Firm Using Open Innovation Is To

question 2

Multiple Choice

The objective of a firm using open innovation is to:

• A) completely outsource its R&D.
• B) to reach out beyond its familiar research partners and to access R&D carried out globally.
• C) allow for inputs purely from external sources by keeping the internal sources on hold for a later point in time.
• D) get tolerant to some aberrations and thereby allow innovation at the cost of rule violations.

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Definitions:

Aggregate Income

The total amount of income earned by individuals and businesses within an economy.

Consumption Function

An economic equation that illustrates the connection between gross national income and total consumption levels.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, indicating how much households intend to consume at various income levels.

Aggregate Income

The total income earned by all individuals and organizations in an economy over a specific period of time.