The fastening method with screw is widely utilized for various types of assembling processes in engineering, architecture and other fields. The purpose of this paper is to clarify the source of competitiveness and competitive advantage in the basic technology industry, analyzing screw industries in Japan.

There already exist a number of research achievements on industrial history and industrial dynamics in each industry. There are also numerous studies that have focused on competitive advantage and competitive structure of certain nations and regions.

However, if we take a look at the industries which have been chosen as subjects of academic studies, they are polarized into either assembly industries such as automobiles, motorcycles, electric products and shipbuilding or material industries such as steel and chemicals. There have been relatively few articles which focus on industrial dynamics of intermediate goods. Therefore, I will focus on the industrial dynamics in the intermediate goods in Japan.

This paper will review the intermediate industry based on the survey data of screwindustries, and then discuss whether the Japanese screw industry is progressing or declining. The examples of development and decline of some of the actual companies in Japan will also be examined in this paper. Through these case studies, I will verify the hypothesis that Japanese screw industries rely on automotive industry. In the conclusion part of this paper, I will clarify the factors that have determined the industry’s development and decline.