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Business Studies

Decentralisation

Identify the ...

Question

Identify the potential advantage that can be gained from involving overseas subsidiary of a company in R&D activities.

A

Innovation is autonomous

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B

Innovation is systemic

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C

Innovation is either systemic or autonomous

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D

Innovation is made by service sector firms

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Solution

The correct option is D Innovation is autonomous
An autonomous innovation can be commercialized without any accommodation by other elements of the technological system of which it is a part. Small firms within such a system must ensure that the value they create is not appropriated by others in their network.

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