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Growing R&D Collaboration of Japanese Firms and Policy Implications for Reforming the National Innovation System1

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  • KAZUYUKI MOTOHASHI

Abstract

Japan's innovation system is often characterized as one dominated by in-house research and development (R&D) by large firms, but recently, more and more firms are involved in R&D collaborations due to the vigorous international innovation competitions and the increasing complexity of R&D. This study examines the role of small and medium sized enterprises (SMEs) in this change, by performing quantitative analyses using RIETI's R&D External Collaboration Survey. First, it is found that SMEs have gained high R&D productivity through university industry collaborations (UICs). Absorptive capacity theory suggests large firms with internal R&D resources are good at UIC activities as well. However a growing trend of UICs is found in small firms or new technology-based firms (NTBFs), which focus on focused R&D such as specific product development projects. Furthermore, these types of small firms play an important role as partners of large firms' R&D collaborations. For large enterprises that are increasingly selecting and focusing on areas of in-house R&D, there is a great incentive to collaborate with NTBFs with unique technologies. In this sense, NTBFs play a central role in changing Japan's national innovation system from an in-house system to a network based one. Policy implications for accelerating this change are also discussed.

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  • Kazuyuki Motohashi, 2008. "Growing R&D Collaboration of Japanese Firms and Policy Implications for Reforming the National Innovation System1," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(3), pages 339-361, July.
    • Handle: RePEc:taf:apbizr:v:14:y:2008:i:3:p:339-361
    DOI: 10.1080/13602380802116773
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    Cited by:

    1. Halili, Zahra, 2020. "Identifying and ranking appropriate strategies for effective technology transfer in the automotive industry: Evidence from Iran," Technology in Society, Elsevier, vol. 62(C).
    2. Motohashi, Kazuyuki & Muramatsu, Shingo, 2012. "Examining the university industry collaboration policy in Japan: Patent analysis," Technology in Society, Elsevier, vol. 34(2), pages 149-162.
    3. Nepelski, Daniel & De Prato, Giuditta, 2011. "Internationalisation of ICT R&D in Asia vis a vis the world regions," MPRA Paper 39281, University Library of Munich, Germany.
    4. Petr MATOUS & TODO Yasuyuki, 2014. "The Effects of Endogenous Interdependencies on Trade Network Formation across Space among Major Japanese Firms," Discussion papers 14020, Research Institute of Economy, Trade and Industry (RIETI).
    5. 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.
    6. Dang, Jianwei & Motohashi, Kazuyuki & Huo, Dong, 2022. "Get Pennies from many or get a Dollar from one? Multiple licensing in markets for technology," Technovation, Elsevier, vol. 113(C).

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