Fumio Kodama

Reconciling the conflict between the 'pollution-haven' hypothesis and an emerging trajectory of international technology transfer

Abstract Many developing countries have relied on technology transfer through foreign direct investment (FDI) from developed countries as a primary means of technology acquisition. However, recent increased global eco-consciousness and linking of trade and investment with environmental issues has the potential of disrupting these investment flows. This paper investigates the validity of the `pollution-haven hypothesis (which claims that an open market regime will encourage the flow of generally low-technology polluting industries to developing countries) from a neo-technology trade perspective. In the process, an emerging trajectory of international technology transfer favoring high-technology industries is established. This paper concludes that positive measures enhancing FDI is not only crucial for technology upgrading, but at the same time brings about enhanced environmental welfare through transfer of eco-friendly products and production processes.

Diversification dynamics of the Japanese industry

Abstract The diversification dynamics of R&D activities and business of Japanese industry was analyzed. The diversification of R&D activities developed in many industries during the 1980s but did not develop well during the early 1990s. There were some industries of which diversification in business developed just as it followed their R&D activities. The direction of diversification in R&D activities and business was also analyzed. It was found that the direction of diversification for high-tech and scale-intensive industries was downstream. Furthermore, the relationship between “diversification” and “performance” was analyzed using quantitative methods. The analysis showed that profitability dropped generally in industries which were highly diversified in unrelated fields. On the other hand, the progression of diversification in unrelated fields contributed to high sales growth. In addition, according to the results of the case study and quantitative analysis, it was found that diversification strategy that expanded into downstream activities with core technology or core component technology contributed to increased profitability.

Quantitative analysis of modularization in the automobile and PC industries

Abstract Much research has been done on modularizing the PC industry and automobile industry. In the analysis of the effect of modularization in the PC and automobile industries, however, very little of this research has been quantitative. In this paper, we use the number of patent applications for PC and automobile components to analyze the modularization in the PC and automobile industry. We calculated a ratio of the number of patents applied for by PC/automobile manufacturers vis-à-vis the total number of patent applications for the components, and used it to quantitatively judge whether PC/automobile manufacturers still hold the initiative with respect to R&D. The analysis indicates that PC manufacturers no longer hold the R&D initiative but that automobile manufacturers still do for engine control systems. On the other hand, it indicates that automobile manufacturers no longer hold the R&D initiative on the safety and communication control systems. The paper finally verifies the correlation between modularization and R&D initiative by means of regression analysis.

Market growth models in which the potential market size increases with time

This paper analyzes market growth models, whose potential markets increase with time stepwise or continuously. There is no previous research paying attention to the expansion of this potential market. The n-step logistic model and double logistic model are presented as the new model. This research verifies the validity of the models by quantitative analysis.

Analysis on supplier system of the automobile industry

Many have researched Japans automobile industry and its influence over its supplier system. However, very little of this research, where changes in the automobile industry and its supplier system are analyzed, is quantitative. In this paper, change in the automobile industry is quantitatively analyzed using the number of patent applications for automobile components. A ratio was calculated of the number of patents that were applied for from the car manufacturer itself and the total number of patent applications. From this ratio, we can quantitatively judge whether or not R&D initiative is still in the car manufacturer. Our analysis indicates that R&D initiative is still in automobile manufacturer, in the stokehold and engine control systems. But on the other hand, in other component fields, such as air bag and navigation, the R&D initiative is no longer in the auto manufacturer, as in the PC industry.

Dynamic analysis on the R&D of manufacturers in Japan

To date, there has been no quantitative, statistically proven analysis of R&D dynamics, although there are other conceptual models that are neither quantitative nor statistical. This paper analyzes R&D patterns in noncore business areas of Japanese industries utilizing the freezing rate concept of R&D. The authors analyzed the frequency distribution of the Japanese manufacturers R&D expenses invested in their noncore product fields for each industrial sector. They assumed that there are two kinds of patterns for the freezing rate of the R&D and examined into which pattern each of 21 sectors fell. They also developed an index about the degree R&D programs in each of the 21 sectors related to pure science.