IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v8y1999i1p55-74.html
   My bibliography  Save this article

Innovations and geographic focus: A comparison of US and Japanese firms

Author

Listed:
  • Ito, Kiyohiko
  • Rose, Elizabeth L.

Abstract

We investigate the relationship among R&D expenditures (corporate and industry), firm size, and sales performance, considering large US and Japanese firms in the 1980s. The elasticity of international sales with respect to corporate R&D expenditures is higher for the US firms than for the Japanese firms in the sample. In addition, the US firms in high-technology industries seem to be less internationally oriented than corresponding firms in Japan. Overall, the US firms do not appear to benefit consistently from the innovations of competitors within their own industry, while the Japanese firms in the sample appear to obtain benefits from the innovations of other firms, particularly with respect to export sales.

Suggested Citation

  • Ito, Kiyohiko & Rose, Elizabeth L., 1999. "Innovations and geographic focus: A comparison of US and Japanese firms," International Business Review, Elsevier, vol. 8(1), pages 55-74, January.
    • Handle: RePEc:eee:iburev:v:8:y:1999:i:1:p:55-74
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593198000389
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Edwin Mansfield, 1988. "The Speed and Cost of Industrial Innovation in Japan and the United States: External vs. Internal Technology," Management Science, INFORMS, vol. 34(10), pages 1157-1168, October.
    2. Lawrence G. Franko, 1989. "Global corporate competition: Who's winning, who's losing, and the R&D factor as one reason why," Strategic Management Journal, Wiley Blackwell, vol. 10(5), pages 449-474, September.
    3. Horst, Thomas, 1972. "Firm and Industry Determinants of the Decision to Invest Abroad: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 258-266, August.
    4. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
    5. Mansfield, Edwin & Romeo, Anthony & Wagner, Samuel, 1979. "Foreign Trade and U.S. Research and Development," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 49-57, February.
    6. Morck, Randall & Yeung, Bernard, 1991. "Why Investors Value Multinationality," The Journal of Business, University of Chicago Press, vol. 64(2), pages 165-187, April.
    7. Paul J. H. Schoemaker, 1990. "Strategy, Complexity, and Economic Rent," Management Science, INFORMS, vol. 36(10), pages 1178-1192, October.
    8. Zvi Griliches, 1998. "R&D and Productivity Growth: Comparing Japanese and U.S. Manufacturing Firms," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 187-210, National Bureau of Economic Research, Inc.
    9. Kotabe, Masaaki & Cox III, Eli P., 1993. "Assessment of shifting global competitiveness: Patent applications and grants in four major trading countries," Business Horizons, Elsevier, vol. 36(1), pages 57-64.
    10. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    11. Richard P. Rumelt, 1982. "Diversification strategy and profitability," Strategic Management Journal, Wiley Blackwell, vol. 3(4), pages 359-369, October.
    12. Aneel Karnani & Birger Wernerfelt, 1985. "Multiple point competition," Strategic Management Journal, Wiley Blackwell, vol. 6(1), pages 87-96, January.
    13. Lipsey, Robert E & Weiss, Merle Yahr, 1981. "Foreign Production and Exports in Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 488-494, November.
    14. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    15. Morck, Randall & Yeung, Bernard, 1992. "Internalization : An event study test," Journal of International Economics, Elsevier, vol. 33(1-2), pages 41-56, August.
    16. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    17. Mansfield, Edwin, 1988. "Industrial R&D in Japan and the United States: A Comparative Study," American Economic Review, American Economic Association, vol. 78(2), pages 223-228, May.
    18. Mansfield, Edwin, 1980. "Basic Research and Productivity Increase in Manufacturing," American Economic Review, American Economic Association, vol. 70(5), pages 863-873, December.
    19. repec:fth:michin:282 is not listed on IDEAS
    20. Kiyohiko Ito & Vladimir Pucik, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 61-75, January.
    21. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    22. Iwao Kuroda & Yoshiharu Oritani, 1980. "A Reexamination of the Unique Features of Japan's Corporate Financial Structure A Comparison of Corporate Balance Sheets in Japan and the United States," Japanese Economy, Taylor & Francis Journals, vol. 8(4), pages 82-117.
    23. van Witteloostuijn, Arjen & van Wegberg, Marc, 1992. "Multimarket competition : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 18(2), pages 273-282, July.
    24. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    25. Odagiri, Hiroyuki, 1983. "R & D Expenditures, Royalty Payments, and Sales Growth in Japanese Manufacturing Corporations," Journal of Industrial Economics, Wiley Blackwell, vol. 32(1), pages 61-71, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kseniia Boiko, 2022. "R&D activity and firm performance: mapping the field," Management Review Quarterly, Springer, vol. 72(4), pages 1051-1087, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rakesh B. Sambharya & Jooh Lee, 2014. "Renewing Dynamic Capabilities Globally: An Empirical Study of the World’s Largest MNCs," Management International Review, Springer, vol. 54(2), pages 137-169, April.
    2. Kafouros, Mario I. & Forsans, Nicolas, 2012. "The role of open innovation in emerging economies: Do companies profit from the scientific knowledge of others?," Journal of World Business, Elsevier, vol. 47(3), pages 362-370.
    3. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    4. Lasse B. Lien & Peter G. Klein, 2013. "Can the Survivor Principle Survive Diversification?," Organization Science, INFORMS, vol. 24(5), pages 1478-1494, October.
    5. García-García, Raquel & García-Canal, Esteban & Guillén, Mauro F., 2017. "Rapid internationalization and long-term performance: The knowledge link," Journal of World Business, Elsevier, vol. 52(1), pages 97-110.
    6. Anne Marie Knott & David J. Bryce & Hart E. Posen, 2003. "On the Strategic Accumulation of Intangible Assets," Organization Science, INFORMS, vol. 14(2), pages 192-207, April.
    7. Luís Cabral, 2018. "We’re Number 1: Price Wars for Market Share Leadership," Management Science, INFORMS, vol. 64(5), pages 2013-2030, May.
    8. Der-Fang Hung, 2015. "Sustained Competitive Advantage and Organizational Inertia: The Cost Perspective of Knowledge Management," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 769-789, December.
    9. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.
    10. Catherine Matraves & Laura Rondi, 2007. "Product Differentiation, Industry Concentration and Market Share Turbulence," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 14(1), pages 37-57.
    11. Stoelhorst, J. W. & van Raaij, Erik M., 2004. "On explaining performance differentials: Marketing and the managerial theory of the firm," Journal of Business Research, Elsevier, vol. 57(5), pages 462-477, May.
    12. Bruce Rasmussen, 2010. "Innovation and Commercialisation in the Biopharmaceutical Industry," Books, Edward Elgar Publishing, number 13680.
    13. Carpano, Claudio & Rahman, Manzur & Roth, Kendall, 2003. "Resources, mobility barriers, and the international competitive position of an industry," Journal of International Management, Elsevier, vol. 9(2), pages 153-169.
    14. Diamond, Arthur Jr., 2003. "Edwin Mansfield's contributions to the economics of technology," Research Policy, Elsevier, vol. 32(9), pages 1607-1617, October.
    15. Chiara Guardo & Giovanni Valentini, 2007. "Taking Actively Advantage of MNCs’ Presence," Small Business Economics, Springer, vol. 28(1), pages 55-68, January.
    16. Berry, Heather & Sakakibara, Mariko, 2008. "Resource accumulation and overseas expansion by Japanese multinationals," Journal of Economic Behavior & Organization, Elsevier, vol. 65(2), pages 277-302, February.
    17. Yuan Li & Yi Liu & Feng Ren, 2007. "Product innovation and process innovation in SOEs: evidence from the Chinese transition," The Journal of Technology Transfer, Springer, vol. 32(1), pages 63-85, April.
    18. Mario Bourgault & Élisabeth Lefebvre & Louis A. Lefebvre, 1995. "Innovative Efforts as Determinants of Export Performance: The Case of Specialized Suppliers," CIRANO Working Papers 95s-23, CIRANO.
    19. Holm, Ulf & Sharma, D. Deo, 2006. "Subsidiary marketing knowledge and strategic development of the multinational corporation," Journal of International Management, Elsevier, vol. 12(1), pages 47-66, March.
    20. Toulan, Omar N., 2002. "A resource perspective on internationalization responses to market liberalization," Emerging Markets Review, Elsevier, vol. 3(1), pages 51-68, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:8:y:1999:i:1:p:55-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.