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MNE3703 EXAM PACK 2022
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MNE3703EXAM PACK
, MEMO MNE3703 EXAM OCTOBER/NOVEMBER 2015 NH Manchidi
__________________________________________________________________________________________________
QUESTION 1 (COMPULSORY)
CASE SCENARIO: FLASH OF GENIUS
Marc Abraham’s recent film Flash of Genius tells the story of Bob Kearns, the inventor of the intermittent windscreen wiper
and his battle to capture the value of his invention. The film begins in 1962 when Kearns was driving his Ford Galaxie in
Detroit. Light rain caused the wipers to screech back and forth across the windscreen. Hearing the noise Kearns had his flash
of genius – why can’t wipers work like eyelids with a blinking action? Working at home in his basement Kearns devised an
electronic timer for the wiper comprising a transistor, a capacitor and a variable resistor. When the voltage in the capacitor
reached a certain level, the transistor turned on and the wiper wiped the windscreen. Running the wiper motor drained voltage
out of the capacitor turning the transistor off and breaking the circuit thereby switching the wiper motor off after a single wipe.
The wiper remained static until the capacitor recharged and the cycle began again.
Having patented his innovation with the help of a friend, Kearns showed it to engineers at Ford. They had been working on a
similar device but based on vacuum technology rather than electronics. Ford’s engineers were enthusiastic. Kearns was told
that the new wiper would be incorporated into next year’s model and he began to plan to put it into production. Then quite
suddenly Ford said it wasn’t interested in the technology after all. Kearns was devastated. Over time shock turned to anger
when Ford began to appear with an intermittent wiper. Other manufactures followed suit. As the film shows it was to take
Kearns 20 years of legal battles but eventually in 1990 a jury ruled that Ford had infringed Kearns’ patent, and the car giant
agreed to pay him $10.2million.
(Adapted from: Smith, 2010:13)
QUESTION 1
1.1 Recognition of multiple sources of innovation reflects the changing nature of innovation and the changing
context within which it takes place.
Provide reasons why users in new product development are increasingly becoming the source of
innovations. (5)
Any 5 marks
1 Improvements in communication such as the appearance of the internet.
1 Cheaper and better telecommunications.
Smith 2010:
1 The growth of the media have given users much improved access to each other and to manufacturers
Chapter 5
and suppliers, as well as much approved access to knowledge.
p 88-92
1 Improvement in computing Study Guide
1 Examples of computing that include CAD, spreadsheets and project-management software has enabled Section 5.3
users to develop their own new product development capacity.
1 Greater levels of education which include increased rates of participation in higher education.
1 Increased growth of open innovation.
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, 1.2 Value creation and value capture are key aspects of business models.
Which three (3) business models were identified by Chesbrough to enable firms to convert technological
potential (i.e. inventions) into economic value? (3)
3 marks Smith 2010:
Chapter 1, p
1 Incorporate the technology into the current business. 15 Study
Guide
1 Licence the technology to a third party (i.e. another firm). Section 1.3
1 Launch a new venture to exploit the technology in new business areas.
1.3 Inventions may be technically very sophisticated and result in what are technically great products but, as
Chesbrough remind us “There is no inherent value in technology per se”. The economic value of technology
remains latent until it is commercialised in some way. A business models serves the dual function of
enabling value capture and value creation.
Define the term “value creation”. (2)
Any 2 marks
1 Involves articulating the value proposition which determines the actual value/benefit of the new product or
Smith 2010:
service.
Chapter 6, p
1 Includes the specifying of who the customer is.
110
1 Without these aspects of an innovation being clearly defined there is a real danger that the innovation will
Study Guide
appeal to no one other than the investor. Section
1 If the value of the new technology is overvalued it could result in poor sales and ultimately a failed 6.2.4
innovation.
1.4 What methods of bootstrapping did Bob use? Motivate your answer with appropriate fact (s) from the case
scenario. (2)
2 marks Smith 2010:
1 Bob worked at home in his basement. Chapter 10, p
1 Bob patented his innovation with the help of a friend 204
Study Guide
Section 10.4
1.5 One of the problems with any form of intellectual property is that the greater the potential value, the stronger
the incentive for others to copy it in order to reap some form of commercial gain (Smith: 131).
1.5.1 Define the term “patent”. (2)
Any 2 marks Smith 2010:
n/a
2 A patent is an exclusive right granted for an invention, which is a product or a process that provides a
new way of doing something, or offers a new technical solution to a problem. Study Guide
Section 7.3
2 A patent provides protection for the owner, which gives him/her the right to exclude others from
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, making, using, exercising, disposing of the invention, offering to dispose, or importing the invention.
1.5.2 Describe the purpose of a patent for the owner of the patent. (2)
2 marks Smith 2010:
n/a
2 A patent provides protection for the owner, which gives him or her right to exclude others from making,
using, exercising, disposing of the invention, offering to dispose, or importing the invention. Study Guide
Section 7.3
1.5.3 Why was it important for Bob to register a patent? Use appropriate facts from the case study to motivate
your answer. (4)
4 marks Smith 2010:
n/a
2 After Bob’s 20 years of legal battles eventually in 1990 a jury ruled that Ford has infringed
Bob’s patent, and the car giant agreed to pay him $10.2 million. Study Guide
Section 7.3
2 Bob would not have been able to capture the value of his invention had he not registered and
kept renewing his patent for the duration of the legal case..
1.6 What category of technical entrepreneur would you say Bob is? Substantiate your answer with appropriate
facts from the case scenario. (2)
2 marks Smith 2010:
Chapter 9, p
1 A user technical entrepreneur.
183
1 Bob was a user of his invention. He discovered the invention while using his car in the rain.
Study Guide
Section 9.4
1.7 There are three (3) models (routes) that describe how the invention phase of innovation can be undertaken.
1.7.1 Describe the three (3) routes to innovation (6)
3 x 2 marks Smith 2010:
Chapter 1, p
1 Individual model/heroic route
10
1 The inventor is portrayed as a hero, battling against all odds, isolated, lacking support and short of
Study Guide
resources.
Section 1.3
1 Corporate model/close route
1 In this model corporate research and development facilities in the form of R & D laboratories are the
main engine of invention. E.g. IBM.
1 Open model/route
1 The open model of invention recognises that there are other external sources like large corporations
which having developed new technologies decide not to commercialise them.
1 Another external source is small, external entrepreneurial high-tech companies.
1 Open models are flexible and could incorporate inventions coming from the internal route and being
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