1. Describe the relationship between the public sector and the private industry in the development and facilitation of technological innovations. How have global trends on the proportion of resources spent on technology development changed in recent years? What are the implications of these changes?

2. What would you say are the most important things a manager needs to understand to build organizational capabilities for innovation and ensure that the organization is ready to take advantage of future technology opportunities?

3. Patents on genes differ from patents on other things in two important ways. First, if you patent a gene, there is no way for rivals to make something better, which is not the case on other technologies (e.g. semi conductors). Second, researchers cannot identify a gene that causes a disease and develop a genetic test for it without getting DNA samples from people who have the gene, while researchers can patent other technologies without obtaining anything from other people. For these two reasons, many people think that we shouldn't be able to patent genes. Do you agree or disagree? Why?

4. Linux is an operating system created by Linus Torvalds, a Finnish student. The operating system is offered free and has become the leading competitor to proprietary operating systems like UNIX and Microsoft. The heart of the system is referred to as the Linux kernel, which is the code that forms the basis of any firm's operating system. The firm is then able to take that code and build on it. This adaptability has led firms such as IBM and Hewlett-Packard to use Linux as their operating system. The development of a system like Linux demonstrates a consistent theme in many technological areas: The predicted pattern of development is difficult to predict. Firms must constantly scan the business horizon for changes that are occurring and look for the unexpected.

A free operating system that becomes the backbone of many firms' efforts would have been difficult to predict five years ago. Today, however, the resource is widely used around the world. What type of technology does Linux represent-continuous, disruptive, or next generation? Explain what such a classification of type of technology would mean for competitors and consumers.