Paradigm Shift in Technologies and Innovation Systems

321 Pages·2019·5.552 MB·English

by  John Cantwell, Takabumi Hayashi

John Cantwell · Takabumi Hayashi
Editors
Paradigm Shift
in Technologies
and Innovation
Systems
Paradigm Shift in Technologies and Innovation
Systems
John Cantwell Takabumi Hayashi
(cid:129)
Editors
Paradigm Shift
in Technologies
and Innovation Systems
123
Editors
JohnCantwell Takabumi Hayashi
RutgersUniversity RikkyoUniversity
Newark, NJ, USA Tokyo,Japan
ISBN978-981-32-9349-6 ISBN978-981-32-9350-2 (eBook)
https://doi.org/10.1007/978-981-32-9350-2
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Preface
Innovationisessential tomaintain marketcompetitivenessandsustainablegrowth,
as well as to drive socioeconomic development. Accordingly, at all times, larger
companies have been committed to research and development (R&D) investment,
securingoutstanding R&D personnel, and building aneffectiveR&D management
system.
However, there is no universally desirable R&D strategy that a firm should
pursue.Forexample,thenatureofthequalitiesrequiredforR&Dtalentappropriate
to drive innovation will change over time and will vary across industries. The
importance of cooperative relationships with other companies in R&D also chan-
ges,andthepurposeofcooperationalsovaries.Acriticalreasonisthattechnology
continuestoevolveandthetechnologicalstructurerequiredbyfirmsandindustries
changes.Asthesetoftechnologiesatthecoreofthetechnologicalsystemchanges,
not only the size of the R&D project required and the composition of researchers
will change, but so too the combination of proprietary development and technical
cooperationwithotherinstitutions.Inotherwords,theparadigmofinnovationina
systemic sense continues to evolve. The sustained growth of a firm’s market
competitiveness depends upon its capacity to reflect, respond and adapt to this
evolving paradigm. The most common reason for the decline of an excellent
company in the past has been the failure to adapt to a shift in the prevailing
paradigm. Understanding the changing character of the technological paradigm is,
therefore,animportantresearchthemeinmanagementandeconomics.Thepurpose
ofthisbookistoelucidatevariousunexploredaspectsofatechnologicalparadigm,
and of paradigm change over time.
As is well known, information technology (IT) has been at the core of techno-
logical architecture since the late-twentieth century. IT has streamlined factories,
office labor, and social infrastructure not only in the electrical and electronics
industries,butinallindustries,andithasspurrednumerousproductinnovationsto
create a variety of innovative new products, thereby creating a new kind of con-
sumer society. It appears that Japanese companies were initially successful in
adapting successfully to the IT-centered innovation paradigm and strengthening
their market competitiveness.
v
vi Preface
However, the technological architecture has evolved further, now becoming
centered on digital technology, and the paradigm of innovation has changed
accordingly. As symbolized by the concept of a knowledge-based economy at the
end of the twentieth century, innovations in the massive and highly sophisticated
use and processing of data and knowledge have continuously emerged. Within IT,
software technologies such as computer programming, computer system design,
andartificialintelligencehavebecomethecoreofthetechnologysystemratherthan
hardware. The foundations for the primacy of these software technologies include
the explosive evolution of the internet, the digitization of data, and the dramatic
improvement in computer information processing capabilities.
Thisnew technologicalarchitecture isin theprocessoffurthertransforming the
paradigmofinnovation.Forexample,wehavewitnessedtheemergenceofanopen
modularindustrialsysteminplaceofaclosedintegralsystemasinthepast,which
had taken the form of a vertically integrated business model in which all tech-
nologiesweredevelopedandproducedinternally.Thecurrentshifttowardanopen
modular business model is based on the premise of a global division of labor, and
therefore,aplatform-typebusinessmodelthatacquiresglobalstandardsthroughan
increasingly open international division of labor, and this has been gradually
undermining strategies of concealing and monopolizing technologies in specific
firms or locations. Software development and the explosive spread of the internet,
whichdonotrequirelarge-scaleequipmentandfunds,haveenabledsomeareasof
knowledge to be disseminated throughout the world including in developing
countries,aswellasfacilitatingthesharingandintegrationofexcellentknowledge
from around the world. As a result, the globalization of R&D systems, which can
takeadvantageofgeographicallydiversifiedtalentedhumanresources,hasbecome
anindispensableR&Dstrategy.Furthermore,sincebasicresearchhasbecomemore
important for the development of these advanced technologies, a strengthening
of the collaboration between private companies, universities, and other research
institutions has become an important strategic issue.
Firms that failed to adapt successfully to this new paradigm have lost their
competitive advantage and have stagnated, whereas those that have succeeded in
adapting have gained a competitive advantage.
Whatkindsofstrategicadaptationwillenterprisesandindustriesneedtoadaptto
thenewparadigminthefuture?Fromthisviewpoint,thebookwillanalyzethestate
of internationalization of corporate R&D, the new development of global stan-
dardization strategies, and the role played by large cities, where research institutes
are concentrated, in the exchange of technical knowledge, the development of
human resources for knowledge, and methods for formulating research and
development strategies.
Accordingly,thebookconsistsoftwoparts.Thefirstpart,whichconsistsofthe
following five chapters, mainly discusses the concept of a techno-paradigm from
theperspectiveofitshistoricalandmacroeconomicsides.Then,inthesecondpart,
paradigmshiftsareexaminedfromtheperspectiveofspecificindustrialsectorsand
companies.
Preface vii
Here we would like to highlight some of the key themes to emerge from each
chapter.
Chapter 1 of the first part, entitled “The Philosophy of Paradigm Change in the
History of Social Evolution” by John Cantwell, begins by defining and explaining
themeaningofatechnologicalparadigm,andofparadigmshift.Thechapterplaces
the idea of paradigm change in a philosophical context, arguing that a paradigm
shift can be seen as representing a Hegelian evolutionary process in a social or
cultural setting. The development of a techno-socio-economic paradigm at a
society-wide level is a process of continual co-evolution between three sets of
factors: knowledge, institutions, and technology in production.
In Chap. 2, “Paradigm Changes in Technological Knowledge Connections in
Urban Innovation Systems” by Salma Zaman, it is argued that innovation today
cannot be realized by only one company or even by one location in isolation, and
often there is a need for cross-city and cross-firm knowledge exchange. Therefore,
taking the world’s largest cities for innovation leading to patenting, this study
examines between which cities knowledge flows occur more intensively. For this
purpose, by analyzing the pattern of connections between cities from a mapping
of the locations of the inventors of pairs of citing and cited patents, based on the
data of the United States Patent and Trademark Office, this chapter elucidates the
city-based knowledge network that shows the geography of knowledge exchange
relationships.Thechapterdiscussestheeffectofparadigmshiftonthissubnational
geography of knowledge sourcing in innovation.
Chapter 3, “World-Wide Dispersion of Research and Development (R&D)
Capabilities” by Takabumi Hayashi and Atsuho Nakayama, examines to what
extent R&D capabilities have been geographically disseminated and dispersed
worldwideoverthepast40–50years,analyzingscientificpapersandUSpatentsas
R&D outputs. The analysis shows that the number of different nationalities of
authoraffiliationsonpapersandtherangeoflocationsofthefirst-namedinventors
of U.S. patents have increased and diversified.
Chapter 4, “International Standardization of the New Technology Paradigm: A
Strategy for Royalty-Free Intellectual Property” by Yasuro Uchida, starts from the
point that in the past, the international standardization of intellectual property
(IP)wasanimportantstrategy.OneoftherolesofIPhasbeentogenerateasource
ofrevenuesfromroyalties,butwhatisnowincreasinginIT-relatedbusinessfields
is actually royalty-free exchange. This means that we have witnessed a paradigm
shiftinIPstrategyintheIT-relatedfields.Thischapterexaminesindetailwhysuch
royalty-freecasesareincreasing,andthebackgroundtothisemergentphenomenon.
Chapter 5, “New Roles for Japanese Companies at the Knowledge-Based
Economy”byFumioKomoda,examineshowthetechnologyparadigmhasshifted
from being hardware-oriented to becoming software-oriented in accordance with
trends in the progress and adaptation of IT. The author argues here that one of the
reasons for the downturn of Japanese companies is that they had not been suc-
cessful in adapting themselves to the transition from hardware to software tech-
nologies, remaining overly committed to their hardware heritage.
viii Preface
In Chap. 6, moving into the second part of the book, “Paradigm Shifts in the
TFT-LCD Industry and Japan’s Competitive Position in East Asia”, by Kazuhiro
Asakawa, identifies paradigm shifts in the TFT-LCD industry that have directly or
indirectly led to a change in Japan’s competitive position. The chapter shows that
the declining competitiveness of a country and a firm cannot be fully understood
without closelyrelating ittotheshiftsintheparadigm oftheindustry. Inaddition,
this chapter shows the mutual alignment between paradigm shifts in the industry,
thechangingcompetitivepositionsofacountryandafirm,aswellasthechanging
locusofinnovation,interms ofthedistributionofeffortsbetweendomesticversus
international or in-house versus collaborative activities.
In Chap. 7, “Business-University Collaboration in a Developing Country in the
Industry 4.0 Era—The Case of Hungary” by Annamaria Inzelt, discusses how in
recent years the majority of Hungarian business R&D expenditure has come from
companies wholly, or majority-owned by foreign interests. This high proportion
indicatesthesubstantialroleofforeigncompaniesintheHungarianresearchagenda
and in business-university collaboration. This chapter focuses on how foreign
companies are shaping business-university collaboration in research and experi-
mental development and touches upon the role of government as facilitator.
Chapter 8, “Text Mining Method for Building New Business Strategies” by
Fumio Komoda, Yoshihiro Muragaki and Ken Masamune, examines how under a
new technology paradigm, identifying market needs and finding appropriate tech-
nicalideasbecomemuchmoreunpredictable.Inordertosolvethisproblem,using
pinpoint focus type text mining may successfully provide useful solution methods
for companies. To demonstrate this, the authors use the illustration of a neurosur-
gical robot and discuss how well-founded ideas for the development of a surgical
robot can successfully be discovered.
Chapter9,“ParadigmChangeintheHistoryofthePharmaceuticalIndustry”by
Sarah Edris, argues that with the advancement of molecular biology as a science,
weseeaparadigmshiftinthenatureofR&Dinthedevelopmentofnewdrugsfrom
around the 1990s. As a result, many new forms of cooperation in R&D among
private companies, universities, and public research institutions have now become
unavoidable.
Chapter 10, “Knowledge Transfer and Creation Systems: Perspectives on
Corporate Socialization Mechanisms and Human Resource Management” by
Tamiko Kasahara, explores the role played by corporate socialization mechanisms
(CSMs) and human resource management (HRM) practices in knowledge sharing
andcreationinmultinationalcorporations.Drawingonalongitudinalcasestudyof
CambridgeTechnologyPartners (CTP),thefindingsofthisstudyshow thatCSMs
were incorporated into HRM practices. Specifically, training and development
practices played a role in transferring knowledge from the headquarters to a focal
subsidiary at the corporate level, and from senior to junior consultants at the
individual level. At present, CSMs have laid the foundation for further knowledge
creation for CTP.
Preface ix
Finally,Chap.11,“RedefiningtheInternationalizationofR&DActivities:How
Far Have the Firms’ R&D Members of US and Japanese Companies Been
Diversified?”, by Takabumi Hayashi, examines how the role played by foreign
researchersandengineersengagedinR&DactivitiesintheUSandintheoverseas
R&D activities of US multinational corporations are no longer negligible. The
chapter also examines the extent to which the internationalization of R&D by US
companies would be affected if the outcomes of their activities in the US were
included in the internationalization of R&D. Finally, analyzing the case of Canon
Inc., the most active Japanese-based company in patenting, it is shown how much
the internationalization of R&D activities differs between IBM and Canon.
ThefurtherevolutionofIT,andofinternationalknowledgecreationandsharing
will doubtless continue to lead to further gradual changes in the innovation para-
digm. The various themes presented in this book help us to better understand at
leastsomeaspectsofthisevolution.Weencouragefurtherresearchonthesetopics
in the future, and hope to contribute to such efforts ourselves.
Finally, in editing the book, we would like to express our gratitude to the
following editing staff members of Springer publishing: Ms. Swetha Divakar, Mr.
Yutaka Hirachi, and Ms. Shinko Mimura, for their valuable comments and kind
cooperation.
Newark, USA John Cantwell
Tokyo, Japan Takabumi Hayashi
Contents
1 The Philosophy of Paradigm Change in the History of Social
Evolution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
John Cantwell
2 Paradigm Changes in Technological Knowledge Connections
in Urban Innovation Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Salma Zaman
3 World-Wide Dispersion of Research and Development (R&D)
Capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Takabumi Hayashi and Atsuho Nakayama
4 International Standardization of the New Technology Paradigm:
A Strategy for Royalty-Free Intellectual Property . . . . . . . . . . . . . 73
Yasuro Uchida
5 New Roles for Japanese Companies at the Knowledge-Based
Economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Fumio Komoda
6 Paradigm Shifts in the TFT-LCD Industry and Japan’s
Competitive Position in East Asia . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Kazuhiro Asakawa
7 Business-University Collaboration in a Developing Country
in the Industry 4.0 Era—The Case of Hungary . . . . . . . . . . . . . . . 163
Annamaria Inzelt
8 Text Mining Method for Building New Business Strategies . . . . . . 197
Fumio Komoda, Yoshihiro Muragaki and Ken Masamune
xi