Which of the Following Statements Accurately Brings Out the Difference

question 57

Multiple Choice

Which of the following statements accurately brings out the difference between closed innovation and open innovation?

• A) Firms following the open innovation model are much more likely to be prone to the not-invented-here syndrome than firms pursuing a closed innovation model.
• B) While open innovation focuses on building an effective business model to commercialize R&D, closed innovation focuses on being first to market.
• C) Firms following the open innovation model are more protective about their intellectual property than firms pursuing a closed innovation model.
• D) While open innovation means introducing new technologies to new markets, closed innovation refers to introducing new technologies to existing markets.

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Definitions:

Test Marketing

A marketing approach involving the trial of a new product or service in limited geographical areas to gauge its viability before a full-scale launch.

Growth Stage

A phase in the lifecycle of a business or product characterized by rapid revenue and customer base expansion, requiring careful management to sustain growth.

Sales Climb

An increase in the number of products or services sold over a particular period of time.

Direct Distribution

A method where products are sold and delivered to consumers directly from the producer, bypassing intermediaries.