Charla Griffy-Brown

Patent statistics: deciphering a ‘real’ versus a ‘pseudo’ proxy of innovation

Abstract Patent statistics have fascinated economists concerned about innovation for a long time. However, fundamental questions remain as to whether or not patent statistics represent the real state of innovation. As Griliches pointed out, substantial questions involve: What aspects of economic activities do patent statistics actually capture? And, what would we like them to measure? He pointed out that these statistics can be a mirage appearing to provide a great number of objective and reliable proxies for innovation. This paper aims to address some of these questions by making a comparative evaluation of the representability of patent statistics in four levels of the innovation process, using as examples research and development (R&D) in Japans printer and photovoltaic solar cell (PV) industries over the last two decades. Furthermore, this research provides a new set of patent statistics which could be considered a more reliable proxy for innovation.

Global Technology Spillover and its Impact on Industry's R&D Strategies

Investigates trans-national technology spillover mechanisms involving host firms in Japan and donor firms elsewhere. Included in these mechanisms are the technology spillover contribution to production increase and the role of assimilation. Two terms are used to describe the parties involved -- the donor is the firm that undertakes the R&D activities to create or improve the technology while the host is the firm that benefits from the work of the donor. The host needs to possess an assimilation capacity in order to enjoy such benefits. Cooperation between the donor and host allows both firms to achieve the greatest return from technology spillover. It is important to link technology spillovers to production if firms want to maximize the effects on socio-economic development. The assimilation capacity that is required consists of the following abilities: to distinguish profitable technology spillovers, internalize accepted technology spillover, and embody the internalized stock of technology spillover to production process. To better understand the assimilation capacity, the electrical machinery industry in Japan from 1975 to 1995 is explored. Results show that the assimilation approach using labor quality demonstrates a very real behavior. The assimilation capacities in Japans electrical machinery industry increased until 1987 but then drastically decreased during the bubble economy. This decrease is attributed to the stagnation of informatization and the trend in aging of the labor force. While Japan is the primary country considered in this analysis, the observations are a common trend throughout the world. (SRD)

Technology spillover as a complement for high-level R&D intensity in the pharmaceutical industry

Abstract The pharmaceutical industry is a typical high R&D intensive industry. This is because medical supplies are based purely on R&D. Therefore, their major tenants, the pharmaceutical industry, must be a technology-driven industry. Huge amounts of R&D resources are required for generating new products. However, these resources are generally too much of a burden for smaller pharmaceutical firms, compelling them to depend on the effective utilization of technologies and research developed by their competitors. How to best utilize these technologies depends on assimilation capacity. Firms with a well-developed assimilation capacity succeed in effectively utilizing technology spillover resulting in a very productive R&D structure. One critical issue confronting all advanced countries is how to construct a highly productive R&D structure. Pharmaceutical firms with their highly productive R&D structure based on well-developed assimilation capacities provide us with a constructive model for addressing this issue at the national level. This paper undertakes an empirical analysis of R&D activities, focusing on inter-firm technology spillover in Japans 30 leading R&D intensive pharmaceutical firms. This analysis covers the past two decades, elucidating the sources of success in constructing a highly productive R&D structure.

Alliance strategy as a competitive strategy for successively creative new product development: the proof of the co-evolution of creativity and efficiency in the Japanese pharmaceutical industry

Abstract Aimed at analyzing the continuity of core competence in a core field, the behavior of 11 Japanese pharmaceutical firms over the last two decades was analyzed. This study demonstrates that firms could maintain originality as a core competence in ongoing new product development (NPD) by utilizing a licensed alliance product as a tool for maintaining or injecting this originality. This finding was demonstrated by a comparative study of the core fields of each firm in the Japanese pharmaceutical industry.

Behavior of technology in reducing prices of innovative goods—an analysis of the governing factors of variance of PV module prices

Classical growth accounting theory suggests that technological innovation leads to a price decrease. Technology diffusion theory states that technology diffuses into a market place in an epidemic manner and is incorporated into production factors and innovative goods. In addition, learning theory suggests that the learning exercise results in a price decrease. Even though these theories work with overlapping processes no significant work has yet to be undertaken to bridge these three theoretical frameworks. Consequently, the behavior of technology in reducing the prices of innovative goods remains a ‘black box.’ This paper attempts to elucidate this black box by unraveling this mechanism. An empirical analysis across a distribution of 639 PV module prices in Japan’s leading PV firms is introduced and the mechanism of technology contribution to decreasing these prices is identified.

Aligning Business Strategies and IS Resources in Japanese SMEs: A Resource-Based View

Abstract The alignment between business strategies and IS resources is widely believed to aid firm performance. In this research, we review the historical development and current technological status of small and medium size enterprises (SMEs) in Japan over the past 50 to 60 years. Through the lens of the Resource-Based View of the Firm (RBV), we explored the role of information systems in Japanese SMEs and found that the adoption of information systems in Japanese SMEs consisted of extensive subcontracting networks which formed the basis of the Japanese production system and was an essential resource for contributing to successful implementation of global business strategies. This research also found that Japanese SMEs formulated and enacted strategies which leveraged information systems resources to enhance operations and strategic relationships and to establish dynamic capabilities.

Remaining innovative without sacrificing stability: an analysis of strategies in the Japanese pharmaceutical industry that enable firms to overcome inertia resulting from successful market penetration of new product development

Abstract Firms competing in increasingly technologically sophisticated markets have encountered a new set of challenges. Often as a firm becomes successful in technology development, inertia enters into the process. Successful co-evolution of technology often stimulates this inertia as a preference to just refine and market the same product, which ensures stability for the firm. Unfortunately, this tendency stifles innovation. We can observe this phenomenon by analyzing product changes in the pharmaceutical industry, which is a typical high intensive R&D industry. As an inevitable result of too much strengthening of a specific core field, one failure often observed is the inability to quickly move into complementary or different product areas. One survival solution is co-evolution of technology products developed in such a way that external and internal firm circumstances that affect the customer are constantly considered. The question this analysis addresses is, “How do we construct an interface between core and new products in order to simultaneously maximize core competence and yet at the same time remain flexible?” Institutional elasticity is one mechanism for creating such a trade-off between stability and ongoing new product development. Flexibility at the edge of product development could keep a firm from falling into a dangerous equilibrium position, thereby enabling it to remain innovative without sacrificing stability

Technology spillovers and informatisation in Japan: An analysis of information technology diffusion in large versus small and medium-sized enterprises

While Japan ranks second in the world in terms of Information and Communications Technology (ICT) production, the diffusion of Information Technology (IT) in Japan is occurring only in very specific segments of the Japanese economy. Even though Large Enterprises (LEs) are integrating IT into their practices, Small and Medium-sized Enterprises (SMEs) are much slower in assimilating IT. The first part of this analysis will demonstrate Japans global position in IT in terms of production and diffusion, discussing the current direction of informatisation in Japan. The second section will illustrate the critical relationship between Japans technology spill over production growth, and R&D showing that this process is partially accountable for Japans current economic stagnation. The third section will show that information technology diffusion plays a critical role in this process. The final section will deal exclusively with the micro-causes of this imbalance demonstrating a disparity of IT diffusion in SMEs and LEs. This critical fault line in Japans transition to an information-based society has relevant policy, economic and corporate implications for strategic national decisions.

Optimal timing of the development of innovative goods with generation — an empirical analysis focusing on Canon's printer series1

Abstract It is generally observed in innovation in manufacturing goods that new innovation is conducted successively by making dramatic improvements on prevailing innovation. This is also the case in Canons core innovative goods, printers, which currently share 50% of its total sales. Triggered by the development of the large laser beam printer in the middle 1970s, Canon achieved successive development of the new generation of printers including the laser beam printer in the middle 1980s and the bubble jet printer in the 1990s. Canons success in the development and introduction of the printer technology can be attributed to the optimal timing of the switching from existing technology to new generation technology. However, this process is part of a firms confidential strategy and is generally unveiled. In light of the significance of the identification of this switching process, this paper, by applying an epidemic function approach, attempts to elucidate the development trajectory of each respective printer over the three generations. On the basis of this trajectory elucidation, this investigation identifies the interactions among respective technology generations, timing and tempo of development as well as the introduction and diffusion of respective technologies. The purpose of this work is to provide insight into the development of new innovative goods with a development pattern similar to the optical card.

Stimulating R&D: An analysis of the Ministry of International Trade and Industry's 'visions' and the current challenges facing Japan's technology policy-making mechanisms

A critical policy-making tool in Japans economic growth has been strong government-driven ‘visions’ of technological economic development, formulated through joint work and open discussion with representatives and experts from a broad spectrum. Amidst the current economic uncertainty, Japan faces challenges in applying this policy vehicle. This paper analyses the mechanisms behind Japans ‘visions’ in its industrial technology policy over the last four decades. Current challenges and policy responses to stimulate R&D are examined and the Ministry of International Trade and Industrys new role and approach to shaping the future is explored. Implications for future R&D policy are discussed in the light of the process of creating ‘visions’. Copyright , Beech Tree Publishing.