The Journal of Science Policy and Research Management

How to Cross the "Death Valley"

Yoichiro HARA

Article type: Article
2009 Volume 24 Issue 1 Pages 2-3
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_2

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It is often said that the commercialization of research outcomes requires crossing the "death valley" produced by the gap between the investment policies for research on the one hand and for development on the other. The low rate of success in many academia-industry collaboration R & D projects can be explained by this gap, which can be particularly great between academic research and commercial development policies. Nevertheless, a certain development subvention project has recorded a success rate as high as 30%. Its report conference suggested two reasons of this high performance. The first is the seriousness on the part of companies, most of which were small or medium-sized with modest financial resources, as shown by their choice of promising subjects and low-risk planning. The second is good coordination and strict management of the development processes. Expecting a fortuitous breakthrough, often seen in fundamental research works, is not justified in the development stage. These two principles should also apply to fundamental research: adhering to a deliberate strategic plan is the golden rule.

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[title in Japanese]

[in Japanese]

Article type: Article
2009 Volume 24 Issue 1 Pages 4-5
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_4

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Visualization of Corporate Strategy Shift : A U.S.-Japan comparison(<SPECIAL REPORT>ASPECTS OF STRATEGIC CHANGE)

Fumio KODAMA, Kazuichiro KODAIRA, Aiko OKADA

Article type: Article
2009 Volume 24 Issue 1 Pages 6-15
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_6

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Assuming that the only managerial parameters of a business company decided on by the CEO are R & D expense, capital spending and operating expense, the financial reports from 1980 to 2005 of several major companies in the U.S. and Japan were analyzed to trace their strategies. The trajectories obtained show that the strategy shifts decided by the CEO are represented by the inflection points in the curves. The strategy shifts in the American businesses (IBM and Intel) were made in the incumbency of the CEOs, while the move in many Japanese companies corresponded to the time of CEO replacement. The clearest illustration was usually obtained for the pair of capital spending and R & D expense for the U.S. businesses, and for that of operating expense and R & D expense for the Japanese companies. Some Japanese firms were found to have needed no strategy shift. Analysis of their patents revealed a long-term strategy focused on continuous and systematic exploitation of their technological assets to match market trends.

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Delayed Strategy Shift : The role of "performance illusion" in the digital still camera industry(<SPECIAL REPORT>ASPECTS OF STRATEGIC CHANGE)

Yaichi AOSHIMA

Article type: Article
2009 Volume 24 Issue 1 Pages 16-34
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_16

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Advances in the semiconductor and digital technologies urge the electronics industry to introduce modular structures of the products and correspondingly assume decentralized industry structure. This means for individual businesses a major shift in corporate strategy, which is vital, in theory, for attaining or maintaining their competitive positions in the market. However, the analysis of the Japanese digital still camera (DSC) industry made in the present work showed that the leading companies have maintained their competitive edge without radical strategy shift. This was probably because high pixel counts, regarded as the principal measure of image quality, remained as the focus of competition, which favored companies with their own distinctive and integrated design solutions. The importance of technical features of the products and demand situations in the evolution of product architecture and industrial structure cannot be denied, but actual courses of evolution are under strong influence of the shared beliefs about the value of products or functions, corporate strategies, and their interaction, as demonstrated by the present work.

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Strategic Innovation in Big Businesses : Lessons from NTT's strategy transformation(<SPECIAL REPORT>ASPECTS OF STRATEGIC CHANGE)

Mitsuru KODAMA

Article type: Article
2009 Volume 24 Issue 1 Pages 35-53
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_35

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It is attempted to develop a theoretical framework for a strategic shift in a conventional big business. First, a concept of Strategic Innovation Capability is defined, which is the capability of a company as a system to shift the corporate strategy by innovation, and compared with foregoing theories including Dynamic Capability, Major Innovation Dynamic Capability, and Breakthrough Innovation Capability. Second, the concept is applied to a case study on Nippon Telegraph and Telephone's (NTT's) strategic innovation to establish a competitive edge in the broadband market, for which the top management identified promising products, services and business models and deliberately presented them as challenges to the company's traditional strategy, competence and corporate culture. Theoretical and practical implications of the case study are discussed. The article is concluded by future tasks for the study.

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Shifting Process of Technological Strategy in Organization : A case study on Matsushita's plasma television(<SPECIAL REPORT>ASPECTS OF STRATEGIC CHANGE)

Tomoatsu SHIBATA

Article type: Article
2009 Volume 24 Issue 1 Pages 54-70
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_54

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Technological strategy shift management for smooth transition from the current technology to a new one has become more important than ever for modern businesses. Many foregoing studies on this subject have, however, been concentrated on unsuccessful cases of failure and analyzed causes of the failure: few studies have given detailed analysis of successful technology transition. This paper presents a detailed case study on the strategy shift by Matsushita Electric for the new plasma television business. New propositions are presented on three subjects: (1) who (the top or middle management) starts the process of strategy shift and how; (2) how the relationship of divisions concerned with the new technology in relation to those for conventional technology (boundary management) when development projects based on the two kinds of technology proceed in parallel; and (3) how the old technology is abandoned to complete the shift.

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Dilemmas in Strategic Change and Flexibility : A decision-making view(<SPECIAL REPORT>ASPECTS OF STRATEGIC CHANGE)

Katsuhiko SHIMIZU

Article type: Article
2009 Volume 24 Issue 1 Pages 71-83
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_71

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In a highly uncertain and changing environment, the capability to identify major changes in the external environment, quickly commit resources to new courses of action in response to those changes, and recognize and act promptly when it is time to halt or reverse existing resource commitments is critical yet difficult. The challenge results from the substantial uncertainties inherent in making strategic decisions as well as from psychological and organizational biases that affect the attention, assessments, and actions of decision-makers in ways that prevent them from recognizing problems and acting in a timely fashion. Being careful and rational is important but not sufficient. I show that managers may become unconsciously trapped in a vicious cycle of insensitivity, self-serving interpretation, and inaction. I recommend five practical steps for avoiding such problems. I stress that managers and organizations should be prepared and proactive to overcome the biases, to avoid becoming trapped in the vicious cycle of rigidity, and to cope effectively with the uncertainties of a dynamic environment.

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[title in Japanese]

Article type: Bibliography
2009 Volume 24 Issue 1 Pages 85-88
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_85

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Diversification of R & D Investment and Profitability

Tomohiro YAMAGUCHI

Article type: Article
2009 Volume 24 Issue 1 Pages 89-100
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_89

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This paper investigates the relationship between diversification of R & D investment and profitability by using the panel data of individual companies and measuring diversification with the quantitative index and the qualitatively strategic classification. The process of the diversification index does not show big change on the whole, but varies from industry to industry, and the degree of the index also varies the variation from each industry, for instance the level of high technology is high and domestic is low. Then the ratio of strategic classification of diversification indicates that firms often diversify the R & D investment, especially around related business field. Additionally this study demonstrates that the more diversified, the less profitable the company is. Based on the findings, it is suggested that choice, concentration and upgrading intangible qualification are important for R & D investment.

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The Impact of ISO9000 Certification Upon Financial Performance in Japanese Manufacturing Firm

Yoshiteru YAMADA, Schumpeter TAMADA

Article type: Article
2009 Volume 24 Issue 1 Pages 101-111
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_101

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There is little study which examines the relationship between quality improvement activities in Japanese manufacturing firm and its financial performance empirically. In this paper, we use certification of ISO9000, quality management systems standards, as an indicator of quality improvement activities. We employ event-study method to examine the impact of seeking ISO9000 certification at early stage on financial performance of Japanese manufacturing firm. The findings indicate that financial performance, which is return on assets (ROA) and cost of good sold divided by sales (COGS/SALES), is improved from the year of certification to one year later. However, the effect of improvement deteriorated year after year. In contrast, from two year to one year before certification, we find that there is negative effect of certification on financial performance, which is ROA and COGS/SALES. In addition, we do not find any significant impact of certification on relative growth in sales.

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Research on the Mind and Behavior Skills Required for Patent Licensing Coordinators

Yoshitoshi TANAKA, Kazuyoshi NOMAGUCHI

Article type: Article
2009 Volume 24 Issue 1 Pages 112-121
Published: August 10, 2009
Released on J-STAGE: October 21, 2017

DOIhttps://doi.org/10.20801/jsrpim.24.1_112

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The activities towards new business creation with patent licensing have been activated. Patent licensing advisors are expected to make key roles on this direction. The responsibilities carried by patent licensing advisors are very broad and expanded to cover many jobs between a licensor and a licensee, in addition, the ability beyond knowledge and experience are also strongly requested such as communication ability, leadership, speedy, supporting ability, etc. This research defines "Mind and Behavior Skills" required for patent licensing advisors, clarifying it by using competency dictionary, together with questionnaires and its principal component analysis. Furthermore, A model of "Mind and Behavior Skills" are proposed through interviews to excellent patent licensing advisors, which is utilized for training and education tools, also as a recruiting tool, expecting further activation and promotion of patent licensing activities.

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