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Bridging IslandsVenture Companies and the Future of Japanese and American Industry$
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Robert Kneller

Print publication date: 2007

Print ISBN-13: 9780199268801

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780199268801.001.0001

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Innovation Across Time and Space: Advantage New Companies

Innovation Across Time and Space: Advantage New Companies

(p.232) 7 Innovation Across Time and Space: Advantage New Companies
Bridging Islands

Robert Kneller

Oxford University Press

This chapter considers the evidence (and also the circumstances) under which independent ventures can, in many industries, be superior innovators in new fields of technology. The chapter is organized as follows. Part I compares the innovative capabilities of ventures and established companies. Part II discusses whether these findings are likely to be applicable to other industries. Part III explores whether venture companies undercut the innovation capabilities of large companies, particularly by poaching employees. Part IV discusses whether ventures are capable of sustained innovation even though many companies are narrowly focused and lack broad integrated learning and organizational capabilities. Part V suggests that Japan's dearth of venture companies probably is hurting its innovation capabilities in a number of fields. Part VI analyzes some of strengths of Japan's manufacturing industry: the behind-the-scenes role of small companies and personal management policies based on a system of lifetime employment, as well as the purported benefits of government-organized R&D consortia. Part VII examines whether the system of lifetime employment, autarkic innovation in large companies, and preemption of university research is likely to change in the near future, and concludes that the likelihood is low.

Keywords:   Japanese companies, innovation, venture companies, high technology industry, R&D

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