1999 Volume 27 Pages 773-778
Existing research suggests that most of the remarkable innovation process arises from interindustry competition, instead of interfirm competition wi thin one industry. We have a hypothesis that the new industry creation process also arises primarily through interindustry competition and technology fusion. We analyzed the dynamics of interindustry competition of environment industry quantitatively. We used the data on the R&D expenditure for environmental protection and measured “the degree of interindustry competitiveness” using the entropy index. The degree remained low during 1980s, but it has increased since the end of 1980s. This increasing means response to relatively new environmental concerns such as global warming. Using data on R&D expenditure by industry and product field, we formulated a technology fusion graph. We also suggested that policy fusion would be needed for environment industry.
