Abstract
The importance of the effective utilization of external resources by forming research and development (R&D) alliances has been extensively addressed by policy makers and researchers. This chapter examines the relationship between technological capabilities of firms and the utilization of external R&D resources via R&D alliances with a focus on how the state of competition affects such relationships. First, this chapter reviews the definition of R&D alliance and open innovation. Then, the determinants of R&D alliance, possible effects of R&D alliance on corporate performance, and the relationship with competition are examined by introducing prior research literature. Finally, the chapter attempts to examine the relationship between the use of external R&D resources and the state of competition based on the analytical framework in the historical study of Odagiri and Goto (Technology and industrial development in Japan: Building capabilities by learning, innovation, and public policy. Oxford: Oxford University Press, 1996). Using the longitudinal data of Japanese firms from the 1960s to the 2010s, the processes of technology acquirement, development of technological capability, and the restructuring of industries are a focus. The following issues are examined: the contribution of internal R&D activities and the use of joint research on the development of technological capabilities, the price-cost margin of various industries, and competitive pressure from domestic firms and foreign firms measured by the number of firms and import penetration ratios, respectively.
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Notes
- 1.
The Council for Science and Technology Policy chaired by the Prime Minister formulates the Basic Plan every 5 years.
- 2.
Odagiri and Goto (1996) used the term acquisition of technology or technology acquisition to describe obtaining technological knowledge from external organizations and do not constrain the route for acquisition. In this paper, the term technology acquisition is already used as a form of R&D procurement in a narrower sense, almost equivalent to licensing. Therefore, to avoid confusion, the original term acquisition of technology and technology acquisition is replaced by acquirement of technology and technology acquirement in this chapter.
- 3.
For details on this database, see Goto and Motohashi (2007).
- 4.
The number of joint applications from 1964 to 1970 for all patents is set to zero in the IIP Patent Database. However, given that a certain number of patents are jointly submitted from 1971, there is a possibility that zeros during the period 1964–1970 include nonzeros in practice.
- 5.
The joint application ratio is obtained by the following: joint application ratio (%) = (number of joint application/number of joint application + number of sole application) × 100.
- 6.
The figure is not listed in this chapter because of space limitations.
- 7.
Food, beverages, tobacco, and feed; textile mill products, clothing; lumber and wood products; furniture and fixtures; pulp, paper, and paper products; chemical and related products; petroleum and coal products; rubber products; leather tanning, leather products, and fur skins; ceramic, stone, and clay products; iron and steel; nonferrous metals and products; fabricated metal products; machineries and precisions; electronics; transportation equipment.
- 8.
Downloadable from the Bureau of Statistics (http://www.stat.go.jp/data/chouki/18.htm). More recent exchange rates can be downloaded from the Bank of Japan (http://www.boj.or.jp/statistics/pub/boj_st/index.htm/).
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Iwasa, T. (2017). R&D Alliances and the State of Market Competition. In: Honjo, Y. (eds) Competition, Innovation, and Growth in Japan. Springer, Singapore. https://doi.org/10.1007/978-981-10-3863-1_7
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