Yuji Tou

Effective assimilation of intra‐technology spillover as a key to sustainable functionality: Comparative analysis of copying machine development in Canon and Ricoh

Purpose – A virtuous cycle between effective utilization of external resources and functionality development can be constructed. Given that the timely emergence of new functionality in an efficient way is crucial to a firms competitive strategy in an era of mega‐competition, construction of such a virtuous cycle is a key element with regard to a firms technopreneurial strategy. The purpose of this paper is to identify a trigger for such a virtuous cycle.Design/methodology/approach – Empirical comparative analysis taking copying machines development trajectories in Canon and Ricoh and the patent data analysis were conducted.Findings – Cumulative learning from preceding relevant technology development is found to stimulate intra‐technology spillover. Timely intra‐technology spillover from preceding innovation plays a triggering role.Practical implications – Attempting a broad and comprehensive learning exercise should be strongly encouraged for the effective utilization of external resources for innovatio...

Global coevolution as a source of a high-profits resilient structure: a lesson from Shin-Etsu Chemical

Dynamic changes in external circumstances in a mega-competitive environment have prompted high-technology firms to pursue a high-profit resilient structure for their survival. Among Japanese chemical industry firms, Shin-Etsu Chemical has constructed a highly profitable and resilient structure by focusing its business segments into four core fields. This was made possible by fusing indigenous strength and lessons learned from global best practices primarily from its US subsidiary, Shintech. Shin-Etsus success in this global coevolution strategy, which has led to efficient fusion and enabled its noteworthy establishment of a high-profit resilient structure, provides constructive suggestions for firm survival strategy in a mega-competitive environment. On the basis of trends in patent data and utilising concepts of entropy, centrality and network externalities, this paper attempts an empirical analysis of Shin-Etsus efforts to construct a global coevolutionary mechanism and demonstrates the foregoing hypothetical view.

An Empirical Analysis of the Institutional System’s Effects on the Development of China’s Personal Computer Industry—From Inertia to Innovation

In line with the global advancement of information technology (IT), China’s personal computer (PC) industry has undergone a dramatic development in recent years. Worldwide, China ranked fourth in 2002 in total number of PCs installed, following the USA, Japan, and Germany. This marks significant progress, considering that China only ranked 16th in 1993. This leap can be attributed to China’s annual growth rate; at 42.9%, China is the frontrunner in the world. The quality of China’s PCs has also improved considerably. As a result, total sales by indigenous PC manufacturers caught up with those by international PC makers in 1997. Furthermore, Lenovo, China’s largest PC manufacturer, purchased IBM’s PC division in 2004, increasing the company’s world market share from only 2% (rank 9 in the world) to 7.6% (rank 3). The surge in China’s PC production suggests the following hypothetical reasons for the PC industry’s evolution from initial inertia along a continuously rising trajectory to its current state of success: (i) effective exploitation of technology spillover from imported PC components; (ii) the acceleration of market learning effects; and (iii) a shift toward high functionality development, enabling Chinese PC makers to catch up with international counterparts in the highly competitive market environment of the late 1990s. This chapter attempts to verify the aforementioned hypotheses through an empirical analysis of the factors that have shaped the development of China’s PC industry.