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The Restructuring Of Japanese Research And Development: The Increasing Impact Of Science On Japanese R&D

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  • Lee Branstetter
  • Kwon Hyeog Ug
Abstract
Concerns about the competitiveness of Japan's high-technology industries has prompted a number of recent reforms seeking to strengthen the ability of Japanese firms to utilize scientific discoveries, often originating in universities, in their R&D activities. Using an original panel data set comprised of over 300 leading Japanese R&D-performing firms, we seek to measure changes in the connection between science and Japanese industrial technology by using data on the citations to scientific articles appearing in the U.S. patents of these firms. Econometric analysis suggests that this connection is substantial, that it has grown over time, and that it contributes significantly to the research productivity of Japanese firms. Our data suggest that scientific research originating outside Japan, particularly in the United States, generates a particularly important component of these knowledge spillovers, and that measured knowledge flows are systematically related to firms' efforts to forge research alliances with American firms and universities. We integrate our econometric findings with data on the scientific publications of Japanese firms as well as a series of semi-structured interviews with Japanese R&D managers, academic scientists, and other experts. These various sources reveal that the interaction between Japanese firms and universities, domestic and foreign, is complex and takes a number of forms, only some of which are well captured by our data. The implications of this for public policy and for future research on this topic are discussed at length.

Suggested Citation

  • Lee Branstetter & Kwon Hyeog Ug, 2004. "The Restructuring Of Japanese Research And Development: The Increasing Impact Of Science On Japanese R&D," Discussion papers 04021, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:04021
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    Cited by:

    1. Yusuf, Shahid & Nabeshima, Kaoru, 2005. "Japan's changing industrial landscape," Policy Research Working Paper Series 3758, The World Bank.
    2. Matt Marx & Aaron Fuegi, 2020. "Reliance on science: Worldwide front‐page patent citations to scientific articles," Strategic Management Journal, Wiley Blackwell, vol. 41(9), pages 1572-1594, September.
    3. Leten, Bart & Landoni, Paolo & Van Looy, Bart, 2014. "Science or graduates: How do firms benefit from the proximity of universities?," Research Policy, Elsevier, vol. 43(8), pages 1398-1412.
    4. Marcus NOLAND, 2007. "From Industrial Policy to Innovation Policy: Japan's Pursuit of Competitive Advantage," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(2), pages 251-268, December.
    5. R. Anton Braun & Toshihiro Okada & Nao Sudou, 2006. "U.S. R&D and Japanese Medium Term Cycles," Bank of Japan Working Paper Series 06-E-6, Bank of Japan.
    6. Antonio Malva & Stijn Kelchtermans & Bart Leten & Reinhilde Veugelers, 2015. "Basic science as a prescription for breakthrough inventions in the pharmaceutical industry," The Journal of Technology Transfer, Springer, vol. 40(4), pages 670-695, August.
    7. Toshihiro Okada, 2018. "International R&D Spillovers, Innovation by Learning from Abroad and Medium-Run Fluctuations," Discussion Paper Series 183, School of Economics, Kwansei Gakuin University.
    8. Belderbos, Rene & Leten, Bart & Suzuki, Shinya, 2009. "Does Excellence in Academic Research Attract Foreign R&D?," MERIT Working Papers 2009-066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Jesiļevska Svetlana, 2016. "Aspects of Statistics on Innovation in Latvia and Some Guidelines for Its Effective Use," Economics and Business, Sciendo, vol. 29(1), pages 37-42, August.
    10. Rene Belderbos & Vincent Van Roy & Bart Leten & Bart Thijs, 2014. "Academic Research Strengths and Multinational Firms' Foreign R&D Location Decisions: Evidence from R&D Investments in European Regions," Environment and Planning A, , vol. 46(4), pages 920-942, April.
    11. Belderbos, René & Leten, Bart & Suzuki, Shinya, 2023. "International R&D and MNCs' innovation performance: An integrated approach," Journal of International Management, Elsevier, vol. 29(6).
    12. Shinya Suzuki, 2017. "International University–Industry Linkage: Impact on Firm Technological Performance," Millennial Asia, , vol. 8(1), pages 48-63, April.

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