Abstract
This study focuses on firms' failure of recognition problem in innovation, especially when they introduce new technologies. As an interpretation system, firms develops information filters for efficient information processing, however due to those filters, firms sometimes hit roadblocks to develop skills to use new technologies. Steel industry is one of oldest industry and its history is the history of importing and implementing technologies, most of which are invented and developed in other countries and continents. However, not all firms are developers. Most firms "purchase" technologies and upgrade toward high grade products by "integrating" processes. This study elaborates on what makes process integration difficult, focusing on the linkages among manufacturing processes and recognition problem.