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New Strategies for New Challenges: Corporate Innovation in the United States and Japan
Report of a Joint Task Force of the National Research Council and the Japan Society for the Promotion of Science
Committee on Japan
Office of Japan Affairs
Office of International Affairs
National Research Council
Washington, D.C.
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NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.
This report has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the NRC's Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making the published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process.
While the individual reviewers provided constructive comments and suggestions, responsibility for the final content of this report rests solely with the authoring committee and the institution. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the organizations that provided support for the project. This project was made possible with funding support from the United States-Japan Foundation, National Research Council, and Committee 149 of the Japan Society for the Promotion of Science.
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Bruce M. Alberts is president of the National Academy of Sciences.
The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievement of engineers. Dr. Wm. A. Wulf is president of the National Academy of Engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Kenneth I. Shine is president of the Institute of Medicine.
The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Bruce Alberts and Dr. Wm. A. Wulf are chairman and vice-chairman, respectively, of the National Research Council.
International Standard Book Number 0-309-05848-1
Additional copies of this report are available from
National Academy Press ,
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Copyright © 1999 by the National Academy of Sciences. All rights reserved.
Printed in the United States of America
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TASK FORCE ON CORPORATE INNOVATION IN THE UNITED STATES AND JAPAN
U.S. MEMBERS
Lewis M. Branscomb, Co-Chairman
Harvard University
Michael G. Borrus
University of California, Berkeley
Lewis S. Edelheit
General Electric Company
Richard Florida
Carnegie Mellon University
Russell D. Jamison
University Illinois, Urbana-Champaign
Edward B. Roberts
Massachusetts Institute of Technology
Robert J. Spinrad
Xerox Corp.
Principal Project Staff
Thomas Arrison Senior Program Officer
Maki Fife Program Officer
JAPANESE MEMBERS
Fumio Kodama, Co-Chairman
University of Tokyo
Jun-ichi Baba
Mitsubishi Electric Corp.
Tsuneo Mitsui
Tokyo Electric Power Co.
Tsuneo Nakahara
Sumitomo Electric Industries
Sogo Okamura
Tokyo Denki University
Hiroshi Sakurai
Engineering Academy of Japan
Sei-ichi Takayanagi
Toshiba Corp.
Michiyuki Uenohara
NEC
Toshiyuki Yamada
Sony Corp.
Research Associate
Kenneth Pechter
University of Tokyo
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COMMITTEE ON JAPAN
Erich Bloch, Chairman
Council on Competitiveness
Richard J. Samuels, Vice-Chairman
Massachusetts Institute of Technology
Sherwood L. Boehlert
U.S. House of Representatives
Lewis M. Branscomb
Harvard University
G. Steven Burrill
Burrill & Company
Lawrence W. Clarkson
The Boeing Co.
Mildred S. Dresselhaus
Massachusetts Institute of Technology
David A. Duke
Corning, Inc. (retired)
Daniel J. Fink
D.J. Fink Associates, Inc.
John O. Haley
University of Washington
Jim F. Martin
Rockwell Science Center
Joseph A. Massey
Dartmouth College
Mike M. Mochizuki
The Brookings Institution
Hugh T. Patrick
Columbia University
John D. Rockefeller IV
United States Senate
Robert A. Scalapino
University of California, Berkeley
Susan C. Schwab
University of Maryland
Ex Officio Members:
Harold K. Forsen, Foreign Secretary,
National Academy of Engineering
F. Sherwood Rowland, Foreign Secretary,
National Academy of Sciences
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Acknowledgments
The Joint Task Force wishes to thank the following individuals for their participation in the review of this report: Marie C. Anchordoguy, University of Washington; Laszlo A. Belady, Mitsubishi Electric Research Labs, Inc.; Arden L. Bement, Jr., Purdue University (review coordinator); Kazuhiko Kawamura, Vanderbilt University; Hisashi Kobayashi, Princeton University; Richard S. Rosenbloom, Harvard Business School; Robert J. Saldich, Raychem Corp.
The project co-chairs would also like to express their appreciation and thanks to Kenneth Pechter, University of Tokyo for his contribution to the report and assistance to the Joint Task Force.
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Contents
Executive Summary
1
1
Introduction
8
2
Past Perceptions of U.S. and Japanese Innovation Systems
10
National Level Differences
10
Firm Level Differences
11
3
Are the U.S. and Japanese Innovation Systems Converging? Evidence for and Against
14
Changes in Industry
17
Changes in Government's Role
24
4
External Relationships in Corporate Technology Policy and Innovation Strategy
29
External Sourcing of Technology and Innovation
29
Consortia for Informal Standardization and Related Technology Development
36
5
Theory and Practice: Developing New Frameworks for Analyzing Systems of Innovation
39
Demand Articulation
39
Indicators of Japanese and U.S. Technology Resources and Assets
40
Corporate Technology Stock Model
41
Innovation-mediated Production and the Role of Knowledge
42
6
Conclusions and Recommendations
44
Conclusions
44
Recommendations
45
