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Creation of relational assets through the ‘library of equipment’ model: an industrial modernization approach of Japan's local technology centres

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  • Hiro Izushi

Abstract

SMEs with a weak internal R&D capacity show the tendency to shy away from using external sources of technical expertise. The tendency deters providers of industrial modernization services from supporting such structurally weak SMEs. This paper examines how Japan's local technology centres -- kosetsushi -- remove the bottleneck and reach out to a significant proportion of SMEs with a weak R&D capacity in their localities. Kosetsushi centres sustain habitual interactions with client firms through ‘low information gap’ services solving immediate needs and lead the clients to a riskier and longer path toward innovation capacity building. This gives kosetsushi centres a position distinct from universities and consultancies in the regional innovation system. While long-term relationships between kosetsushi centres and their client firms can increase switching costs and produce lock-in effects, a case study of two kosetsushi centres illustrates the importance of ‘low-information gap’ services and relational assets created thereby to the modernization of SMEs with a weak internal R&D capacity. The paper calls for long-term commitment by the public sector if it addresses the issue through modernization services.

Suggested Citation

  • Hiro Izushi, 2005. "Creation of relational assets through the ‘library of equipment’ model: an industrial modernization approach of Japan's local technology centres," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 17(3), pages 183-204, May.
    • Handle: RePEc:taf:entreg:v:17:y:2005:i:3:p:183-204
    DOI: 10.1080/08985620500102832
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    References listed on IDEAS

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    1. Odagiri, Hiroyuki & Goto, Akira, 1996. "Technology and Industrial Development in Japan: Building Capabilities by Learning, Innovation and Public Policy," OUP Catalogue, Oxford University Press, number 9780198288022.
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    Cited by:

    1. Noriko Yoda & Kenichi Kuwashima, 2020. "Triple Helix of University–Industry–Government Relations in Japan: Transitions of Collaborations and Interactions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 1120-1144, September.
    2. Nobuya Fukugawa & Masahito Ambashi Author-Person : pam152 & Yuanita Suhud, 2018. "Division of Labour Amongst Innovation Intermediaries in Agricultural Innovation Systems: The Case of Indonesia," Working Papers DP-2018-06, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. FUKUGAWA Nobuya & GOTO Akira, 2016. "Problem Solving and Intermediation by Local Public Technology Centers in Regional Innovation Systems: The first report on a branch-level survey on technical consultation," Discussion papers 16062, Research Institute of Economy, Trade and Industry (RIETI).
    4. Andrés Barge-Gil & Aurelia Modrego-Rico, 2013. "Relationships Among Technology Institutes and Firms: Are Determining Factors Dependent on the Type of Service Provided?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(4), pages 343-369, December.
    5. Andrés Barge-Gil & Aurelia Modrego-Rico, 2008. "Are Technology Institutes a Satisfactory Tool for Public Intervention in the Area of Technology? A Neoclassical and Evolutionary Evaluation," Environment and Planning C, , vol. 26(4), pages 808-823, August.
    6. Nobuya Fukugawa, 2011. "Impacts and channels of university spillovers before the national innovation system reform in Japan," International Journal of Transitions and Innovation Systems, Inderscience Enterprises Ltd, vol. 1(4), pages 383-393.
    7. Andrés Barge-Gil & Aurelia Modrego, 2011. "The impact of research and technology organizations on firm competitiveness. Measurement and determinants," The Journal of Technology Transfer, Springer, vol. 36(1), pages 61-83, February.

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