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Recovering from SuccessInnovation and Technology Management in Japan$
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D. Hugh Whittaker and Robert E. Cole

Print publication date: 2006

Print ISBN-13: 9780199297320

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199297320.001.0001

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Interfirm networks and the management of technology and innovation in Japan

Interfirm networks and the management of technology and innovation in Japan

Chapter:
(p.215) 12 Interfirm networks and the management of technology and innovation in Japan
Source:
Recovering from Success
Author(s):

James R. Lincoln

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199297320.003.0012

Keiretsu are important for understanding the openness, or otherwise, of Japan's innovation system and MOT, corporate specialization, and boundary management. This chapter draws on a series of studies which portray keiretsu ties as both a cause and a consequence of innovation. They foster organizational learning and innovation, and they grow through strategies which allow spin-offs to commercialize core-company R&D. Innovation strategies can cause the ties to strengthen (as in the case of Matsushita), or weaken or become strained (Toyota-Denso). A quantitative study finds that keiretsu ties remained influential for non-R&D activities in the 1990s, while R&D relations became more strategic and less influenced by ‘legacy relations’.

Keywords:   keiretsu, innovation, R&D, legacy relations, Matsushita, Toyota, Denso

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