Abstract
R&D diversification strategy is an integral part of overall corporate diversification strategy and plays an important role in shaping the technology structure of an enterprise. However, the recent stagnation in productivity in Japan demonstrates the significance of the effective R&D diversification strategies. It could be hypothesized that while homogeneous technology structure contributes shortterm efficiency, it is fragile to the changes in the external environment. In this paper, we analyze 13 sectors in Japan's manufacturing industry and their transition of technology structures based on R&D diversification patterns over the period 1970-1997. The results demonstrate that technology structure of the manufacturing industries indicates homogenized characteristics in their R&D diversification patterns. In order to analyze the effect on change in productivity of technology structure, total factor productivity (TFP) was decomposed into direct effect of the technology, indirect effect of the technology, effect of the spillover benefit of the technology, and effect of the change in final demand. In addition, a model which introduced analysis of the technology spillover using the assimilation coefficient, was attempted. The result of the analysis demonstrates that excessive diversification of industry 〓 s technology structure proved homogeneous characteristics that in turn had adverse effect in the productivity.
