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# It has estimated that over 20% of the annual gross domestic product i

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It has estimated that over 20% of the annual gross domestic product i  [#permalink]

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Updated on: 14 Oct 2019, 02:58
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New Project RC Butler 2019 - Practice 2 RC Passages Everyday
Passage # 297, Date : 29-Aug-2019
This post is a part of New Project RC Butler 2019. Click here for Details

It has estimated that over 20% of the annual gross domestic product in the United States is the result of innovation backed at some point by venture capital investors. But what is innovation? One traditional view of innovation is that it is a systematic business process occurring within an organization required to secure ongoing financial growth. But much of the most acclaimed and influential innovation has started with an individual's idea and only somewhat later followed with an organization to execute on that idea, so the organizational definition is of limited relevance.

A more practical definition of innovation is that it is the creation of anything new intended to be commercialized. Under such a definition, the efforts of a lone individual developing a radical idea and those of a department within a large company to explore a new adjacent market are both examples of innovation. This somewhat loose definition, however, fails to address explicitly what makes an innovation truly new, successful, or authentic, although it may imply that all innovation is equally valid in a sense. Otherwise, the oft-repeated challenge to uses of the term innovation may put too little emphasis on the activity and too much on its results. Quite possibly, 80% of the value of innovation has been contributed by 20% of the activity, but whether that 20% of activity could have manifested itself without a culture and economy to support the whole is less clear. In this regard, policy- and strategy-oriented attempts to refine this loose definition of innovation further are without merit.

1. The author of the passage is primarily concerned with

A. discussing data supporting some definitions
B. arguing for the use of a particular definition
C. discussing some definitions of a concept
D. discrediting a common definition of a concept
E. clarifying some ambiguous definitions

2. The author suggests that the traditional definition of innovation, of the two definitions discussed, is

A. more pragmatic
B. less useful
C. less ambiguous
D. more widely used
E. less rigorous

3. The passage suggests which of the following about innovation?

A. Most important innovation occurs outside of the scope of established companies.
B. Quite possibly, 80% of annual gross domestic product is the result of 20% of innovation.
C. Most innovation activity does not ultimately contribute economic value, by either definition given.
D. Less obviously successful acts of innovation may have important results that are not commonly recognized.
E. Most innovations occur in a context that falls outside the scope of the traditional definition of innovation.

4. The author of the passage mentions which of the following as one disadvantage of the "more practical" definition of innovation, as mentioned in the highlighted text?

A. It is too broad to serve as a basis for decisions about innovation policy and strategy.
B. It is narrower in scope than any other definition presented in the passage.
C. It is based on the result of the activity performed rather than on the type of activity performed.
D. It does not provide a basis on which to judge the quality of innovations.
E. It includes widely different activities, such as both developing a radical idea and exploring an adjacent market.

5. The author refers to the "culture and economy" (see highlighted text) that support innovation primarily in order to point out

A. the diversity of factors that contribute to successful innovation
B. considerations not addressed by the more practical definition of innovation
C. the link between innovation according to the more practical definition and the contribution of innovation to the annual gross domestic product
D. a type of innovation that should be defined in terms of its ultimate result rather than in terms of the nature of the activity itself
E. a type of innovation not included in the more practical definition of innovation

Source: GMAT Free (6)
Difficulty Level: 700

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Last edited by SajjadAhmad on 14 Oct 2019, 02:58, edited 1 time in total.
Updated - Complete topic (973).
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Re: It has estimated that over 20% of the annual gross domestic product i  [#permalink]

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30 Aug 2019, 08:06
1
When will the answer explanations be posted?
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Re: It has estimated that over 20% of the annual gross domestic product i  [#permalink]

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30 Aug 2019, 08:49
Explanations will be posted on request by the members (normally after one day of posting question) let me know which question you want to get explained.

Thanks

agodbole wrote:
When will the answer explanations be posted?

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Re: It has estimated that over 20% of the annual gross domestic product i  [#permalink]

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30 Aug 2019, 09:13
1
Official Explanation

1. The author of the passage is primarily concerned with

Explanation

The author discusses one definition, and then a superior but not perfect alternative definition of innovation. Which answer choices match our understanding?

(A) and (E) are out, because the author does not discuss data of any sort or clarify ambiguity (the issue with the first definition was relevance, not ambiguity).

Choices (B) and (D) are similar. Does the author slap down the first definition harshly? Does the author push hard for the use of the second definition? No, and no. While the author prefers the second definition, the author's ultimate judgment is that both definitions leave important questions unanswered and that we will not be able to refine the superior definition and apply it to strategy and policy.

The more general choice, (C), is the correct answer.

5. The author refers to the "culture and economy" (see highlighted text) that support innovation primarily in order to point out

Explanation

This question harks back to the prior question, in which the culture and economy where mentioned to demonstrate that the less obviously important innovations might still play an important role supporting the more obviously important innovations. It's not uncommon for reading comprehension passages to hammer on the same point.

Answer choice (A) is out: no factors or diversity of factors is discussed.

(B) is correct: the author is in the middle of an explanation about how innovations can't be judged easily according to the practical definition.

(C) is the opposite of the point; there isn't a clear link between the definition and the impact on GDP. (D) and (E), similarly, describe what belongs in the definition, but the point is that the definition is inclusive to a fault.

Hope it helps

agodbole wrote:

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Re: It has estimated that over 20% of the annual gross domestic product i  [#permalink]

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31 Aug 2019, 05:17
Spent 13 minutes and got 3 (1, 3 and 4) wrong. 3 and 4 took a lot of time since i could not figure out what was inferred about the innovation (Q3) and what disadvantage s mentioned.

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Re: It has estimated that over 20% of the annual gross domestic product i  [#permalink]

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31 Aug 2019, 07:11
1
Official Explanation

3. The passage suggests which of the following about innovation?

Explanation

In this question, as always, we will attempt to find an answer that must be true. That will be an objectively correct answer to what is suggested to be true. We can apply this filter to the answer choices. The answer choices appear to relate to the author's comments near the end of the passage. We can check back: what is the point here? It's that some innovations are disproportionately useful, but not such that the other ones do not have value. Is there any answer choice matching this view? Answer choice (D) matches the latter part. As the author says, "Whether that 20%"--the very successful innovations--" could have manifested itself without a culture and economy to support the whole"--including the other innovations--"is less clear." So (D) is right on. And if (D) were false, that would undermine the author's comment. As for the other answer choices, we simply haven't been told enough--i.e., anything--about where important innovations occur and whether and how they impact GDP or economic value.

4. The author of the passage mentions which of the following as one disadvantage of the "more practical" definition of innovation, as mentioned in the highlighted text?

Explanation

This question asks for a detail, but it's a more salient detail that should be fairly fresh in our minds, because it pertains to one of the author's opinions: the more practical definition is better than the traditional one, but it doesn't help us decide whether an innovation is "new, successful, or authentic." We can look for that criticism in the answer choices.

(A) is not what we expected but is not offensive. (B) is false; the definition is broader than the traditional one. (C) is plausible, but not stated in the passage. (D) is quite similar to our expectation about "new, successful, or authentic."

(E) might be true, but it's been advanced as an advantage rather than a disadvantage, to the extent that it's either. So we are down to (A) and (D). One will have an objective defect. Is there an error with (A)? The author says that we cannot "refine" the practical definition for use in policy and strategy, but he never says that the unrefined definition can't serve as a basis at all. It's quite possible the author thinks the definition is useful, just not refineable. (A) is out.

Hope it helps

lnm87 wrote:
Spent 13 minutes and got 3 (1, 3 and 4) wrong. 3 and 4 took a lot of time since i could not figure out what was inferred about the innovation (Q3) and what disadvantage s mentioned.

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Re: It has estimated that over 20% of the annual gross domestic product i   [#permalink] 31 Aug 2019, 07:11