The purpose of this study is to examine how Japanese electronic parts manufacturers (JEPMs) protect their technical information in terms of patent applications and trade secrets, how they use patent acquisition and know-how retention or secrecy, and how they maximize their long-accumulated organizational capabilities (OCs) and core technologies to respond to customer needs and changes in the business environment. In JEPMs, the author believes that their high growth and competitiveness have been supported largely by tacit knowledge, such as manufacturing technology and know-how. The trinity of intellectual property (IP) strategy (mainly preservation of trade secrets and know-how), continuous technological development, and frequent updating of product lineups by maintaining a high percentage of new products for diverse applications will not only prevent product obsolescence and imitation but also help firms to maintain technological competitiveness that attracts customers. In this way, the trinity of IP strategy, OCs, and product metabolism helps firms maintain a high level of competitiveness, which is a major characteristic of JEPMs. The author attempts to examine the corporate behavior of JEPMs and the source of their competitiveness while also taking a practical perspective on these actualities. The author presents a model of corporate behavior that maintains a high new product ratio realized as a result.
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