Management of Technology and Innovation in Japan

The Japanese Know-Who Based Model of Innovation Management 107
move in Figure 5 from heterarchy to hierarchy, or from exploration to exploitation.
� The stronger and more hierarchical leadership style was introduced at a stage
where the projects grew in size and shifted from creation to application of
knowledge through physical transfer from R&D to production.
Human know-how carriers integrate the different networks. Referring to the
know-who based model introduced in Figure 2 and expanded in Figure 5, Senior
researcher Dr. Miyata served as a human know-how shuttle between Tokyo University
in the creativity network linked to the Canon Research Centre and the design
and manufacturing process network at the Display Business Operation Centre.
The whole innovation process started as a small creativity network of only
three people with strong ties into external centers of excellence like Chalmers
University and the University of Colorado. The team gradually grew into a project
network, which still maintained strong ties to external sources of specialized skills
and creative invention, while also building increasingly strong ties to the Design
and Manufacturing process networks of the Display Business Operation Centre.
Finally, 90 per cent of the 200 members of this project network were permanently
transferred into this process network to secure full application of the knowledge,
strong ties to the marketing network, and tight control of the supplier network. To
enhance the return on knowledge, some key-FLCD people also migrated into the
(competing) TFT team, as well as into completely different divisions working on
steppers and aligners where Canon’s unique know-how in fine-precision mechanics
created a new competitive advantage for the company as a whole.
Accordingly, by applying an innovation process that was born in Japan, Canon
was not only first in commercializing a disruptive technology that was born in the
West, but also first in applying this knowledge to other applications for further
growth through innovation.
Similarly, Sony has deployed a highly know-who based approach to K&I so as
to acquire and build a sustainable leadership position in several segments and
categories of consumer electronics.
Know-who based networking patterns – as illustrated by Canon and Sony –
may be particularly relevant for companies in which the step between invention
and innovation is large and requires a lot of cross-functional teamwork to happen.
More process oriented companies like those in chemical and pharmaceutical industries
may be able to bridge the innovation gap also with less networking and
perhaps even without multicompetent engineers. This may be one reason why the
Western and, perhaps more static, know-how based approach still seems to secure
leadership positions in many process-based industries, whereas the dynamic
know-who based approach to innovation continues to build leadership positions
throughout Asia in many industries related to ICT and consumer electronics. 10
10 For further reference on how Canon reached its leadership position and on the keycharacteristics
of Japanese leadership for growth through innovation, see Yamai (1997).