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Dynamics in innovation systems: Evidence from Japan's game software industry

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  • Storz, Cornelia

Abstract

In contrast to the US and recently Europe, Japan appears to be unsuccessful in establishing new industries. An oft-cited example is Japan's practical invisibility in the global business software sector. Literature has ascribed Japan's weakness - or conversely, America's strength - to the specific institutional settings and competences of actors within the respective national innovation system. It has additionally been argued that unlike the American innovation system, with its proven ability to give birth to new industries, the inherent path dependency of the Japanese innovation system makes innovation and establishment of new industries quite difficult. However, there are two notable weaknesses underlying current propositions postulating that only certain innovation systems enable the creation of new industries: first, they mistakenly confound context specific with general empirical observations. And second, they grossly underestimate - or altogether fail to examine - the dynamics within innovation systems. This paper will show that it is precisely the dynamics within innovation systems - dynamics founded on the concept of path plasticity - which have enabled Japan to charge forward as a global leader in a highly innovative field: the game software sector.

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  • Storz, Cornelia, 2008. "Dynamics in innovation systems: Evidence from Japan's game software industry," Research Policy, Elsevier, vol. 37(9), pages 1480-1491, October.
    • Handle: RePEc:eee:respol:v:37:y:2008:i:9:p:1480-1491
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    Cited by:

    1. Cornelia Storz, 2008. "Innovation, Institutions and Entrepreneurs: The Case of ‘Cool Japan’," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(3), pages 401-424, July.
    2. Thanos Fragkandreas, 2021. "Innovation Systems and Income Inequality: In Search of Causal Mechanisms," Working Papers 56, Birkbeck Centre for Innovation Management Research, revised Nov 2021.
    3. Krafft, Jackie & Lechevalier, Sebastien & Quatraro, Francesco & Storz, Cornelia, 2014. "Emergence and evolution of new industries: The path-dependent dynamics of knowledge creation. An introduction to the special section," Research Policy, Elsevier, vol. 43(10), pages 1663-1665.
    4. Goumagias, Nikolaos & Fernandes, Kiran Jude & Nucciarelli, Alberto & Li, Feng, 2022. "How to overcome path dependency through resource reconfiguration," Journal of Business Research, Elsevier, vol. 145(C), pages 78-91.
    5. Romain Gandia & Sébastien Brion & Caroline Danièle Mothe, 2011. "Innovation ouverte et management de la propriété intellectuelle : quelles stratégies dans le secteur du jeu vidéo ?," Post-Print hal-00919298, HAL.
    6. HARA, Yasushi & Huang, Wei & Fukuda, Kazufumi & Ikuine, Fumihiko, 2021. "The Development Process, Scale and Scope of Console Game Industry in Japan: Through Analysis of a Multiple Connected Dataset," TDB-CAREE Discussion Paper Series E-2021-03, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    7. Romain Gandia & Elodie Gardet, 2019. "Sources of Dependence and Strategies to Innovate: Evidence from Video Game SMEs," Post-Print hal-01696250, HAL.
    8. Ernkvist, Mirko, 2015. "Velocity shifts in the creative economy: incumbent-entrant dynamics in the emergence of Japanese social games," Ratio Working Papers 267, The Ratio Institute.
    9. Lechevalier, Sébastien & Nishimura, Junichi & Storz, Cornelia, 2014. "Diversity in patterns of industry evolution: How an intrapreneurial regime contributed to the emergence of the service robot industry," Research Policy, Elsevier, vol. 43(10), pages 1716-1729.
    10. Patrick Cohendet & David Grandadam & Chahira Mehouachi & Laurent Simon, 2018. "The local, the global and the industry common: the case of the video game industry," Journal of Economic Geography, Oxford University Press, vol. 18(5), pages 1045-1068.
    11. Werner Pascha & Cornelia Storz & Markus Taube, 2011. "Coordination between Inertia and Dynamic Development: An Overview of Issues and Contributions," Chapters, in: Werner Pascha & Cornelia Storz & Markus Taube (ed.), Institutional Variety in East Asia, chapter 1, Edward Elgar Publishing.
    12. Muhammad Nouman & Mohammad Sohail Yunis & Muhammad Atiq & Owais Mufti & Abdul Qadus, 2022. "‘The Forgotten Sector’: An Integrative Framework for Future Research on Low- and Medium-Technology Innovation," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    13. repec:rdg:wpaper:em-dp2009-08 is not listed on IDEAS
    14. Christina Teipen, 2016. "The Implications of the Value Chain and Financial Institutions for Work and Employment: Insights from the Video Game Industry in Poland, Sweden and Germany," British Journal of Industrial Relations, London School of Economics, vol. 54(2), pages 311-333, June.
    15. Franziska Handrich & Sven Heidenreich & Tobias Kraemer, 2022. "Innovate or game over? Examining effects of product innovativeness on video game success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 987-1002, June.
    16. Meuer, Johannes & Rupietta, Christian & Backes-Gellner, Uschi, 2015. "Layers of co-existing innovation systems," Research Policy, Elsevier, vol. 44(4), pages 888-910.
    17. Hung, Shih-Chang & Whittington, Richard, 2011. "Agency in national innovation systems: Institutional entrepreneurship and the professionalization of Taiwanese IT," Research Policy, Elsevier, vol. 40(4), pages 526-538, May.
    18. Landoni, Matteo & ogilvie, dt, 2019. "Convergence of innovation policies in the European aerospace industry (1960–2000)," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 174-184.
    19. Hu, Mei-Chih & Hung, Shih-Chang, 2014. "Taiwan's pharmaceuticals: A failure of the sectoral system of innovation?," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 162-176.
    20. Storz, Cornelia & Riboldazzi, Federico & John, Moritz, 2015. "Mobility and innovation: A cross-country comparison in the video games industry," Research Policy, Elsevier, vol. 44(1), pages 121-137.
    21. Romain Gandia & Elodie Gardet, 2012. "Sources de dépendance et stratégies pour innover. Une application aux studios de jeu vidéo français," Post-Print hal-01293352, HAL.
    22. Broekhuizen, Thijs L.J. & Lampel, Joseph & Rietveld, Joost, 2013. "New horizons or a strategic mirage? Artist-led-distribution versus alliance strategy in the video game industry," Research Policy, Elsevier, vol. 42(4), pages 954-964.
    23. Ozer, Muammer, 2009. "The roles of product lead-users and product experts in new product evaluation," Research Policy, Elsevier, vol. 38(8), pages 1340-1349, October.

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