Lecture 3 Flashcards Preview

Innovation & Entrepreneurship > Lecture 3 > Flashcards

Flashcards in Lecture 3 Deck (18)
Loading flashcards...
1
Q

Entrepreneurship definition

A

The examination of how, by whom and with what effects, opportunities to create future goods and services are discovered, evaluated and exploited.

2
Q

Stepps in opportunities

A

Existence -> Discovery -> Exploitation

3
Q

Existence of opportunities

A

Why, when & how opportunities for the creation of goods and services come into existence.

4
Q

Discovery of opportunities

A

Why, when & how some people and not others discover and exploit these opportunities

5
Q

Exploitation of opportunities

A

Why, when & how different modes of action are used to exploit entreperneurial opportunities.

6
Q

Opportunities definition

A

Situations in which new goods, services, raw materials and organizing methods can be introduced and sold greater than their cost of production.

7
Q

Opportunities are objective, the process of identifying is subjective and can be split up into:

A

1) Beliefs = people differ in believes due to intuition and private info. Also heuristics vary.
2) Information asymmetries = People have limited attention, different info at different times.

8
Q

Entrepreneurial opportunities

A

Situations in which new goods, services, raw materials and organizing methods can be introduced and sold at greater than their cost of production.

9
Q

Profit opportunities

A

Enhancing the efficiency of existing goods and services

10
Q

The duration of an opportunity depends on:

A
  1. Monopoly rights
  2. Speed of information diffusion and learning
  3. Imitation abilities
11
Q

Determinants of the exploitation of opportunities

A
  1. Demand
  2. Industry profits (e.g. scale of economics)
  3. Technology life cycle
  4. Cost of capital
  5. Individual characteristics
12
Q

Individual characteristics that determine the exploitation of opportunities

A
  • Social ties
  • Experience
  • Perceptions
  • Optimism
  • Locus of control??
  • Ambiguity
13
Q

Who can be entrepreneurs:

A

All agents who seek to exploit opportunities are entrepreneurs. Agents can be:

  1. Individuals
  2. Small/Big firms
  3. Old/new firms
  4. Family firms etc.
14
Q

What is innovation all about?

A

Having the right resources in the right place to create a stream of products and services.

15
Q

Corporate venture capital (CVC)

A

Minority equity investment by established corporations in privately held entrepreneurial ventures.

16
Q

Benefits of Corporate venture capital

A
  1. Exposure to other technology (other R&D)
  2. International business opportunities
  3. License technologies
  4. Alternative to diversification
17
Q

Entrepreneurship is the nexus of two phenomena:

A
  1. The presence of lucrative opportunities

2. The presence of enterprising individuals

18
Q

Reasons why entrepreneurs are more likely than others to discover opportunities:

A
  • Less likely to engage in counterfactual thinking
  • Less likely to regret over missed opportunities
  • Less susceptible to inaction inertia