Purpose – A virtuous cycle between effective utilization of external resources and functionality development can be constructed. Given that the timely emergence of new functionality in an efficient way is crucial to a firm's competitive strategy in an era of mega‐competition, construction of...

Japan’s chemical industry is currently amidst mega‐competition in the paradigm shift from an industrial society to an information society that emerged in the 1990s and consequent globalizing economy. The checkered development trajectory of Japan’s chemical industry has resulted in a...

Purpose: Sustainable functionality development (FD) is decisive to firm's profitability in their new innovation in a competitive market. While functionality instills attractive values in innovative goods leading to a dramatic increase in profit through increasing demand and higher prices, it...

Contrary to its highest R&D intensity, Japan has dramatically decreased its productivity in the 1990s. This can be attributed to a low marginal productivity of technology. Such a productivity decrease compels a delay in R&D, which results in reduced R&D productivity leading to a vicious cycle...

This paper examines the effects of technological distance on the performance of manufacturing sectors relative to the proximity of R&D activities in adjacent prefectures in Japan, and identifies agglomeration effects in innovation and productivity. This analysis provides constructive insights to...

While Japan’s automotive industry increased its production during the bubble economy period in the late 1980s, it changed to dramatic decrease due to the bursting of the bubble economy in 1991 resulted in substantial decrease in its international competitiveness. Such dramatic change has urged...

Contrary to its conspicuous achievement as an industrial society, Japan has been experiencing long lasting economic stagnation due to a paradigm shift toward an information society that emerged in the 1990s. This contraction can be attributed to the shift from a growth‐oriented trajectory in...

Under the new paradigm of an information society, Japan’s institutions did not function as effeciently as they did in an industrial society. Consequently, Japan experienced a vicious cycle between non‐elastic institutions and insufficient utilization of the potential benefits of IT. However,...