In chapter 7, look at the pie chart in the “how does consumer demand affect the nations economy” section and complete the following questions: 1. in your opinion what’s the main point of this chart ? 2. If we add up the total spending of the government businesses and consumers what does it come to ?

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms? a. unlike incumbent firms, new entrants do not have to face the high entry barriers, initially. b. new entrants are embedded in an innovation ecosystem, while incumbent firms are not. c. unlike incumbent firms, new entrants do not have formal organizational structures and processes. d. incumbent firms do not have the advantages of network effects that new entrants have.