？Look at the statements below and at the five extracts from an article about Innovation.？W

？Look at the statements below and at the five extracts from an article about Innovation.

？Which article (A, B, C, D or E) does each statement 1—8 refer to？

？For each statement 1—8, mark one letter (A, B, C, D or E) on your Answer Sheet.

？You will need to use some of these letters more than once.

A

Innovation is the key to continued prosperity. Although the United states is experiencing a lengthy economic boom, its capacity for innovation per capita is losing ground. Ranking first in 1995 in innovation among 17 countries, the United States is projected to drop to fifth place by 2002 if present trends continue, according to the Organization of Economic Cooperation and Development(OECD). To compete effectively in international markets, nations as well as organizations must make innovation a priority.

B

The goal is for your organization to change the rules, structure, and speed of its industry so that your competitors are thrown into chaos. Because your organization initiated the change, it more than likely understands the new rules and structure introduced into the marketplace as it copes with changes in speed. Temporarily at least, your organization will be ahead of the competition. This technique has been used by the military since ancient times. The idea is to confuse the enemy. While the opponent is digging out of the confusion, the organization in the offensive position seizes the dominant position.

C

One contemporary technique that changes the marketplace rules, structure, and speed is innovation—all organization's trump card. When the microchip was invented, Intel was able to gain power over the competition because it capitalized on an innovation. Microsoft innovated the concept of a dominant operating system in personal computers. By capitalizing on innovations, these companies were able to become leaders in their industries while their competitors were temporarily in chaos trying to find their way out. If an organization is offering the same products and services in the same way that it did three years ago, it's on its way to obsolescence or may already be obsolete. Let's answer three questions about innovation.

D

What is innovation？ Innovation is the tangible result of creativity—the process that produces one or more innovations. Creativity is difficult to measure, but innovation is a product or service that is easily defined and measured. Why is innovation necessary？ It is needed for survival and sustainability. Competition is stiff in the global market place that organizations not nurturing innovation will soon find themselves unable to respond to changing customer demands. Conversely, those organizations that make innovation a priority can dominate their industries and experience positive growth. Organizations in the 21st century must foster innovation.

E

How can an organization achieve a high degree of innovation？ Innovation does not happen by itself. It must be intentionally cultivated. Great leaders realize this and work to develop all organizations friendly to innovative endeavors. This effort involves allocating a budget adequate for innovative activities, establishing a physical environment that promotes creativity, eliminating creativity inhibitors, recruiting creative people, grasping the big picture, involving the whole person, promoting new thinking, training experientially, and nurturing autonomy.

By capitalizing on innovations, many companies were able to become leaders in their industries.