Table Of ContentAdvances in Japanese Business and Economics 31
Masatoshi Fujiwara
Yaichi Aoshima
Mechanisms
for Long-Term
Innovation
Technology and Business Development
of Reverse Osmosis Membranes
Advances in Japanese Business and Economics
Volume 31
Editor-in-Chief
Ryuzo Sato, Stern School of Business, New York University, New York, USA
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Yuzo Honda, Faculty of Economics, Osaka Gakuin University, Suita, Osaka, Japan
Jota Ishikawa, Graduate School of Economics, Hitotsubashi University, Kunitachi,
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Kunio Ito, Graduate School of Commerce and Management, Hitotsubashi
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Katsuhito Iwai, International Christian University, Mitaka, Tokyo, Japan
Takashi Negishi, The Japan Academy, Tokyo, Japan
Kiyohiko Nishimura, National Graduate Institute for Policy Studies (GRIPS),
Tokyo, Japan
Tetsuji Okazaki, The University of Tokyo, Tokyo, Japan
Yoshiyasu Ono, Osaka University, Ibaraki, Osaka, Japan
Junjiro Shintaku, University of Tokyo, Tokyo, Japan
Megumi Suto, Waseda University, Tokyo, Japan
Eiichi Tomiura, Hitotsubashi University, Kunitachi, Tokyo, Japan
Kazuo Yamaguchi, University of Chicago, Chicago, USA
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·
Masatoshi Fujiwara Yaichi Aoshima
Mechanisms for Long-Term
Innovation
Technology and Business Development
of Reverse Osmosis Membranes
Masatoshi Fujiwara Yaichi Aoshima
Graduate School of Business Graduate School of Business
Administration Administration
Hitotsubashi University Hitotsubashi University
Tokyo, Japan Tokyo, Japan
ISSN 2197-8859 ISSN 2197-8867 (electronic)
Advances in Japanese Business and Economics
ISBN 978-981-19-4895-4 ISBN 978-981-19-4896-1 (eBook)
https://doi.org/10.1007/978-981-19-4896-1
Translation from the Japanese language edition: “Innovation no choki mekanizumu: Gyakushintomaku no
gijutsukaihatsushi” by Masatoshi Fujiwara and Yaichi Aoshima, © Masatoshi Fujiwara, Yaichi Aoshima
2019. Published by Toyo Keizai Inc. (Toyo Keizai Shinposha). All Rights Reserved.
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature
Singapore Pte Ltd. 2022
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Preface
By exploring the history of reverse osmosis membranes (RO membranes) develop-
ment, this book aims to identify the mechanisms that enable companies to continue
long-term development under a high level of uncertainty.
It was in 2010 that the authors began researching the development of RO
membranes. At that time, the B2C business, represented by the electronics industry,
was in a severe predicament in Japan. Thus there was a conspicuous debate about
the need to shift to the B2B business, including the upstream materials industry,
to maintain Japan’s industrial competitiveness. In the midst of this debate, the
RO membranes, in which Japanese companies have a large market share, attracted
attention as a leading material business that could revitalize the stagnant Japanese
economy.
In January 2008, the Ministry of Economy, Trade and Industry (METI) estab-
lished a study group on water resource policy, where RO membranes were discussed.
Following this trend, we became interested in RO membranes as a representative
example of internationally competitive components and decided to conduct research
to analyze not only the companies that developed RO membranes but also the industry
as a whole.
As soon as we started conducting research, a simple question arose in our minds.
Why did the development of RO membranes continue for so long in Japan from
the 1960s onward, although dams were actively built and water resources were not
severely depleted? We thought that we could deepen our understanding of the inno-
vation processes by uncovering mechanisms that enabled the continuation of a new
business development under technological and market uncertainties for a long time.
We also felt we could make some suggestions for Japanese companies whose develop-
ment activities were becoming short-lived. In retrospect, this research, which began
with such a simple question, has taken quite a long time.
A conclusion drawn from analyses in this book is the importance of shaping expec-
tations in the face of diverse uncertainties about technology, customers, competition,
organizations, and society. For more details, please read the book. By analyzing
long-term development cases, this book clarifies the mechanisms in which internal
v
vi Preface
and external expectations give a future prospect for development activities at any
given time and draw the resources needed to keep them going.
The RO membrane discussed in this book was developed as a component to
solve the serious social problem of securing drinking water. In the midst of global
population growth and environmental pollution, there are many social issues, not
limited to water problems, that we need to solve. It would be a great pleasure if the
analysis in this book can be of some help in the development of new technologies
that lead to the solution of such social problems.
Tokyo, Japan Masatoshi Fujiwara
Yaichi Aoshima
Acknowledgments
Without the cooperation and generosity of the many people involved in the devel-
opment of reverse osmosis membranes (RO membranes), it would not have been
possible to carefully trace the long-term development process and clarify its history.
We are very grateful for the generosity of the people involved in the industry who
have given us the opportunity to conduct this research. This book is wholly the result
of their kindness.
The reason we started this research in 2010 was to write a case study on Toray
Industries, Inc. which was awarded the Okochi Prize for the development of the
RO membrane. At the time, Hitotsubashi University, to which the authors belonged,
was conducting the Okochi Prize Case Study Project to elucidate the mechanisms
of innovation created by Japanese companies with the cooperation of the Okochi
Memorial Foundation. The case study writing that led to this book was conducted as
part of this project. We would like to express our gratitude again to the members of
the Okochi Memorial Foundation.
Afterward, we were able to interview the main related Japanese companies,
Toyobo and Nitto Denko. It is a rare opportunity to be able to provide a compre-
hensive picture of the long process of innovation, from the start of development to
the present day, for major companies in the industry. We are truly grateful for the
opportunity. It would be our great pleasure if the knowledge we have gained through
the cooperation of everyone involved could be repaid in some small way in the form
of this book.
We have tried to describe and analyze the facts as accurately as possible by
carefully interviewing people and consulting many secondary sources. The names
of organizations and institutions whose English names were not available have been
translated into English by the authors in accordance with the original intent. The
authors have also translated the statements in Japanese obtained from the interviews
and articles.
However, differing views and interpretations of development history could always
be possible depending on one’s position even if the facts are the same. Our descrip-
tions may not be enough to include such diverse perspectives and interpretations and
may also have some errors, which we are responsible for.
vii
viii Acknowledgments
It is not limited to individuals in the industry who kindly supported us. We would
like to express our gratitude to Hideki Nakayama of Toyo Keizai Inc. for his generous
support, four students (Mitsuki Ohashi, Yuka Ohashi, Atsuhiro Ozaki, and Naoki
Takada) of our university for data collection, Vincent Coleman for proofreading our
English manuscript, and Mayuka Fujiwara for editing the reference list. We also
received support from academics: Tomono Miki (Chuo University), Takushi Hara
(Kansai University), Akira Takeishi (Gakushuin University), and our colleagues at
Hitotsubashi University. They gave us insightful advice and support. It is not possible
to mention everyone’s name here, but we would like to express our gratitude to all
of them.
Travel within Japan and abroad was necessary for this research project. Okinawa
and Fukuoka are the only two cities in Japan that have large desalination plants.
The three leading Japanese companies all have their business bases in the Kansai
region. The birthplace of desalination research is the United States, and Saudi Arabia
has many large-scale desalination plants. Financial support was essential for the
Tokyo-based authors to carry out these investigations, and we were able to use a
portion of the JSPS Leading-edge Research Promotion Fund (Funding Program for
Next Generation World-Leading Researchers) GZ002 and JSPS Grants-in-Aid for
Scientific Research 26285081, 24243046, 21730329, 20K20754, and 16K03855. We
are very grateful for this support.
We have been substantially away from home because of frequent travels. We would
like to express our heartfelt gratitude to our family for their unwavering support.
Masatoshi Fujiwara
Yaichi Aoshima
Contents
1 Introduction: The Objectives and Research Questions of This
Book ......................................................... 1
1.1 The Research Questions of This Book ....................... 1
1.2 Resolution of Social Problems and Innovation ................ 2
1.3 Perspective of Analysis ................................... 5
1.3.1 The Four Types of Uncertainty ...................... 5
1.3.2 Four Analytical Perspectives: Factors
that Influence the Formation of Expectation ........... 6
1.4 Research Methods ........................................ 11
1.4.1 Single Case Study ................................ 11
1.4.2 Focus on RO Membrane Technology ................ 12
1.4.3 Analytical Advantages of RO Membranes ............ 14
1.4.4 Analysis Method ................................. 14
1.5 The Structure of This Book ................................ 16
References .................................................... 19
Part I Overview
2 The Increasing Demand for Water Treatment and Reverse
Osmosis ...................................................... 25
2.1 The Growing Demand for Water Treatment .................. 25
2.2 Widespread Use of the Reverse Osmosis Method ............. 27
2.2.1 From the Evaporation Method to the Reverse
Osmosis Method .................................. 27
2.2.2 Development of Various Applications ................ 30
2.3 Industry Structure and Competition ......................... 31
2.3.1 Basic Structure of the Water Treatment Industry
by the Membrane Method .......................... 31
2.3.2 Market Share Trends .............................. 33
2.3.3 Price Competition ................................ 35
ix
