What practices guide innovation at W. L. Gore?

Answer: First, it works with potential customers. Second, Gore has a distinctly egalitarian culture; it lets employees choose projects and appoints few product leaders and teams. The company likes to nurture "passionate champions" who convince others a project is worth their time and commitment, and leaders have positions of authority because they have followers. Third, all research associates spend 10 percent of their work hours on "dabble time," developing their own ideas. Promising ideas are judged according to a "Real, Win, Worth" exercise: Is the opportunity real? Can we win? Can we make money? Fourth, Gore knows when to let go.

Shorter product life cycles are common in industries characterized by low level of competition.

Answer: FALSE

Identify the major reasons why new product failures occur. The following are some of the possible reasons for the failure of new products:

• shortage of important ideas in certain areas

• fragmented markets

• social, economic, and governmental constraints

• high cost of development

• capital shortages

• shorter required development time

• poor launch timing, shorter product life cycles

• organizational support

Companies that fail to develop new products leave their existing offerings vulnerable to increased domestic and foreign competition.

Answer: TRUE

Most established companies focus on incremental innovation rather than radical innovation.

reta priceTRUE

High-tech firms that function in a market with high technological uncertainty, high market uncertainty, and high investment costs are not likely to seek radical innovation.

Answer: FALSE