What term describes a high-risk strategy that introduces a new idea that is very different from the current paradigm?

• A. Incremental change
• B. Imitation
• C. Defensive strategy
• D. Radical innovation

Answer: (D)

Radical innovation describes a high-risk strategy that introduces a new idea far different from the current paradigm. It aims to redefine how things are done, often by pursuing new technologies, business models, or markets, and this comes with substantial uncertainty and potential payoff if it succeeds. This contrasts with incremental change, which makes small, predictable improvements to existing products or processes; imitation, which is about copying what others have done; and defensive strategies, which focus on protecting the current position rather than pursuing a disruptive shift. The big, game-changing nature of radical innovation is what makes it the best fit for a paradigm-shifting move.