Abstract
This paper discusses R&D management for a small to medium sized technology oriented manufacturing firm. It will be discussed based on a case study of Yamamoto Precious Metal Company Ltd. This company was originally established as a retailer of gold material 55 years ago, but it changed its business model to manufacturing company. In accordance with market requirement changes, the company expanded the product portfolio to ceramics, and resin material. The company was late to deal with composite resin which is popular material used in dentists. The composite resin system is composed of main body and interface to the tooth. Existing players provide the main body and the interface separately. Typically the interface material is profitable. In order to get in this business, this company is developing material to integrate two parts. This will reduce dentists' burden and price tremendously. The R&D strategy which can be categorized as a destructive innovation will be discussed.