Management of Technology and Innovation in Japan

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316 A. Gerybadze process? The classical, technology-push type innovation model can be described as a rear-drive engine: knowledge is research-driven and leads to scientific advances; the outcome of the research process is often documented in scientific publications and patents. Successive stages of development and refinement lead to new products and to the establishment of emerging industries. Multinational corporations as well as governments in Asia, Europe and in North America invest considerable funds for such research targets in expected growth fields like highenergy physics, nanomaterials, superconductivity etc.. These strategies are valid only inasmuch as investments in research lead to the establishment of new industries and to sustainable comparative advantages. The importance of technologypull type innovations, however, has become reduced. In many highly-innovative industries and particularly in services, the engine resembles more a “front-drive”. Social, economic and environmental problems arise and lead to the search for appropriate new solutions. Latent new markets are created somewhere in the world, sometimes by chance, sometimes through decisive social and technical construction. Leading environments and more advanced foreign locations will attract MNCs to search for new solutions, to combine products and services in a novel way, and this again influences the R&D resource allocation, the research agenda as well as scientific and educational programs. In Figure 2, this type of front-drive or downstream inducement mechanism is called lead market innovation. An increasing number of industries and service sectors like information and communication, medical products and services as well as automotive electronics are strongly affected by lead market innovation. Innovative firms need to implement new business concepts, refined products and service configurations. This is most often done in close interaction with lead users, and here, geographical proximity and network externalities on the demand side are often critical. Knowledge generated in this interaction process is often much more critical than knowledge generated in research labs. In addition to these two types of innovation (research driven vs. lead-market induced), there is a third mode of innovation often promoted in industries and countries with a strong engineering culture and a more technical tradition. For reasons of simplicity, we call this engineering innovation. The core of value added lies in quality and efficiency, and this requires an effective combination of product development, process engineering, supplier involvement and advanced logistics. Engineering innovation builds on a sophisticated network of manufacturers, suppliers and service providers, and also on an educational tradition of sophisticated skills, and workmanship across a wide range of related fields. 5 Innovation and comparative advantage in mechanical engineering, factory automation, mechatronics and transportation systems is largely explained by effectively integrating these skills, and this determines dynamic capabilities for engineering innovation. Nation states that are strong in engineering innovation, have often encountered great difficulties in dealing with research-based innovation or with lead market in- 5 The German and Swiss, as well as the Japanese tradition of skill-based learning and apprenticeship appears to be better suited for engineering innovation, than the Anglo- Saxon or French model of scientific education.
Global Innovation and Knowledge Flows in Japanese and European Corporations 317 novation. In Germany, as an example, overemphasized engineering strength often works against market responsiveness and customer involvement. Key Issue 1: WhereistheCore of Value Added in the Innovation Process / Where is the Engine in the Innovation Process? „Rear-Drive“ „Front-Drive“ RESEARCH-BASED RESEARCH-BASED INNOVATIONS INNOVATIONS / / Scientific Scientific Advance Advance Examples: • Genetic engineering • High-energy physics • Superconductivity ENGINEERING ENGINEERING INNOVATION INNOVATION / / Advanced Advanced ManuManufacturingfacturing Examples: • Automotive engineering • Mechatronics • Plasma technology LEAD LEAD MARKET MARKET INNOVATION INNOVATION / / Customer Customer Integration Integration & & Services Services Research may generate Close Interaction between Implementation of new new Products and Indu- Product- & Process Deve- Business concepts and stries / Embeddedness in lopment / Embeddedness Service Configurations / Research community into advanced Engineering Interaction with Lead critical and Supplier network Users & Network Exter- critical nalities on Demand side critical Examples: • Telecommunication • Automotive electronics • Medical products & services Fig. 2. Core of value-added in the innovation process / Three different types of innovations Home-Base Augmenting vs. Home-Base Exploiting R&D Strategies There is a growing literature on foreign R&D laboratories in MNCs, and on R&D offshoring decisions (Khan and Yoshihara 1994; Gerybadze and Reger 1999; Kümmerle 1997, 1999; Dalton and Serapio 1999; Narula and Zanfei 2004). Earlier studies of foreign R&D have concentrated on uni-directional knowledge flows: leading R&D activities were concentrated in the home-base of MNCs, often in close proximity to headquarters. Companies like BASF and Bayer built on strong capabilities in polymer chemistry and concentrated most of their advanced R&D projects in Ludwigshafen and Leverkusen, Germany respectively. Japanese electronics companies concentrated most of their leading R&D laboratories in the greater Tokyo region. Knowledge generated at home was later transferred to foreign R&D labs, and products and processes became adapted to local conditions. We call this process home-base exploiting R&D, as is illustrated on the left side in Figure 3.
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Management of Technology and Innova
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Prof. Dr. Cornelius Herstatt Christ
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VI Preface and Introduction its ori
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VIII Preface and Introduction commo
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X Preface and Introduction no longe
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XII Preface and Introduction Based
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XIV Preface and Introduction ��
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XVI Preface and Introduction 60�
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Table of Contents Part I: Strategic
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List of Contributing Authors Yaichi
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List of Contributing Authors XXIII
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Designing the Product Architecture
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30 A. Takeishi and Y. Aoshima “gr
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32 A. Takeishi and Y. Aoshima The B
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34 A. Takeishi and Y. Aoshima troub
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36 A. Takeishi and Y. Aoshima Histo
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38 A. Takeishi and Y. Aoshima bles
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40 A. Takeishi and Y. Aoshima mud,
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42 A. Takeishi and Y. Aoshima Table
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44 A. Takeishi and Y. Aoshima Shima
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46 A. Takeishi and Y. Aoshima of th
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48 A. Takeishi and Y. Aoshima parts
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50 K. Kusunoki anticipating and sol
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52 K. Kusunoki both manufacturers a
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54 K. Kusunoki users. With the rele
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56 K. Kusunoki existing performance
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58 K. Kusunoki the LCD computer mon
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60 K. Kusunoki In the home-use vide
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62 K. Kusunoki systems with interna
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64 K. Kusunoki visible dimensions e
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66 K. Kusunoki Cocoon appears a goo
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68 K. Kusunoki level system. To acq
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70 K. Kusunoki music editing softwa
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The Customer System and New Product
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Part II: Process Aspects
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88 S. J. Harryson An important sugg
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90 S. J. Harryson Introducing a Kno
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92 S. J. Harryson Their data also s
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94 S. J. Harryson view of transacti
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96 S. J. Harryson but never produce
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98 S. J. Harryson Know-Who in Produ
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100 S. J. Harryson Leveraging Intra
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102 S. J. Harryson naka stated that
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104 S. J. Harryson protect Canon’
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106 S. J. Harryson Consequently, a
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108 S. J. Harryson References Abegg
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110 S. J. Harryson Johansson U and
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The Domestic Shaping of Japanese In
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Fig. 3. Japanese creativity with lo
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144 M. Yasumoto and T. Fujimoto low
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146 M. Yasumoto and T. Fujimoto in
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148 M. Yasumoto and T. Fujimoto sup
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150 M. Yasumoto and T. Fujimoto Mea
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152 M. Yasumoto and T. Fujimoto com
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154 M. Yasumoto and T. Fujimoto Jap
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156 M. Yasumoto and T. Fujimoto The
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158 M. Yasumoto and T. Fujimoto As
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164 M. Yasumoto and T. Fujimoto Bru
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“Fuzzy Front End” Practices in
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Number of companies 250 200 150 100
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N=551 “Fuzzy Front End” Practic
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186 R. Haak The Toyota production s
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188 R. Haak (1988, p. 3) pointed ou
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190 R. Haak Essentially, the key fa
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192 R. Haak movement of materials n
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194 R. Haak ent from traditional me
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196 R. Haak Total Quality Control (
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198 R. Haak or shared with other co
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200 R. Haak Görgens J (1994) Just
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202 R. Haak Ohno T (1988) Toyota Pr
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Part III: Organizational Aspects
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208 K. Nobeoka Firms such as Toyota
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210 K. Nobeoka to share technology
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212 K. Nobeoka launched an initiati
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214 K. Nobeoka only 23 departments
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216 K. Nobeoka product introduction
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218 K. Nobeoka 1993. Rather the cha
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220 K. Nobeoka Second, Toyota also
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222 K. Nobeoka and it was not often
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224 K. Nobeoka The hierarchical chi
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226 K. Nobeoka tion. Engineers can
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228 K. Nobeoka believes that five d
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230 K. Nobeoka Discussion and Concl
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232 K. Nobeoka essential to support
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234 K. Nobeoka Markides C and Willi
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236 D. Ge and T. Fujimoto ownership
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238 D. Ge and T. Fujimoto shares th
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240 D. Ge and T. Fujimoto Table 1.
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242 D. Ge and T. Fujimoto Based on
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244 D. Ge and T. Fujimoto Discussio
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246 D. Ge and T. Fujimoto sourcing
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248 D. Ge and T. Fujimoto Nishiguch
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250 C. Herstatt, C. Stockstrom, and
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From Practice: IP Management in Jap
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Technology Planning Function From P
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MoT: From Academia to Management Pr
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Index 3G 148 f., 152 5 S process 19
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Japanese consumers 125, 129, 135 Ja
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Management of Technology and Innovation in Japan

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