If so, the project's main ac- complishment may have been to hasten the timetable of development, a nontrivial but hardly revolutionary accomplishment. Organizing national research projects is no easy task. Even if all the organizational wrinkles can be ironed out, success is by no means automatic. To obtain useful results, Me technological capabilities of participating firms must be relatively even.
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One or two fins cannot be too far ahead of the others, or they will not be willing to divulge proprietary information or cooperate in ways that help their competitors close the gap. Over things being equal, the smaller the number of Grins, and the higher the market concentration, We greater the leeway for effective organization. If government-sponsored, cooperative research is not as easily organized, nor as uniformly effective, as Americans assume, why has Japan continued relying on it?
Indeed, why have national research projects expanded in num- ber and scope? One intriguing answer is that they serve to compensate for structural shortcomings in Japan's capital and labor markets. Structural im- perfecuons, such as the underdevelopment of Japan's equities market, Sax- onhouse argues, have prompted the government to encourage capital investments through the christening of seminal technologies and industnes.
Similarly, because the high walls of lifetime employment impede Me diffusion of technology across fins, the Japanese government is forced to step in and facilitate diffusion Trough intercom participation in national research projects. If Saxonhouse's assessment is valid, one can infer Mat America's decen- tralized, market-driven system is clearly more efficient in terms of capital allocation and arguably more effective in terms of stimulating technological innovation than Japan's centralized, state "targeted" system.
Is public policy better suited to keep pace with the rapidity of commercial and tech- nological change than the invisible hand of the free market? Is the state better at picking winners and losers than Me decentralized marketplace? Can Me state channel capital as neutrally? Japan's system of industrial targeting may have been appropriate for the needs of an earlier era of latecomer catch-up, but is it as effective, now that Japan has reached the frontiers of technology? Lack of a Venture Capital Market A swing difference in Japanese and American patterns of capital allocation for high technology is the lack of a venture capital market in Japan.
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The availability of venture funds in the United States has had a profound impact not only on the pace of technological progress but also on the evolving structure of high technology industries. It has created enticing incentives for energetic entrepreneurs to convert technological know-how into small start-up companies that offer new or differentiated products on the market. Looking at Me positive effects from an aggregate perspective, the steady stream of new start-ups serves to keep competition brisk, fosters technological ferment, and promotes efficiency in capital allocation for the high-growth sectors.
It can be argued Mat Me lack of a venture capital market, in combination with Me characteristics of Japanese financial and labor markets, has hindered the creation of independent new start-ups. Even without a venture capital. A number of innovations- mostly in process and production technology but also in some new-product designs have emerged out of the structure of such vertical relationships.
Compared with the dynamism of independent, small firms in, say, Silicon Valley, however, lapan's small enterprise sector has not functioned as a fertile seedbed for technological iMovanon. A National Science Foundation study found that the number of innovations made by small and me- dium-sized Grins In five counmes was lowest In Japan. Research activity in small companies tends, on the whole, to be very limited. Small films in Japan labor under some sig- nificant handicaps, including a systemic bias in favor of big business, higher costs of capital, weaker drawing power for recruitment of topnotch re- searchers, lower prestige, and higher bankruptcy rates.
It is no wonder they have not contributed as much to innovation as Weir counterparts in other countnes. The lack of a venture capital market is attributable to a variety of factors. There appears to be more than enough money for the creation of a large venture capital market; Hambrecht and Quist, for example, recently created a venture fund In Japan with Sanwa Bank and Oriental Leasing.
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But the problem is Mat lapan's stock market is not designed to handle small start- up companies. Without an entry vehicle into Me stock market, venture in- vesunents cannot be liquidated, and venture capitalists cannot cash in on early-round financing. Unless labor patterns change, therefore, the availability of venture capital will not have Me same far-reaching impact In Japan Mat it has had in America. Small, independent firms in Japan will not have Me luxury of operating in an environment as conducive to innovative dynamism as small companies in He United States.
Whatever one's view of Japan's technological future, there seems to be general agreement about He type of technologies in which He Japanese have. As win financial deregulation, these changes could have the effect of freeing up market forces. They might also create a research environment Rat is more conducive to the kind of bold, new-product designs and state-of-the-art breakthroughs for which Japan has not heretofore been known.
Whether this heralds the onset of a new era of technological originality is still too early to tell. The evidence is too mixed to make simple projections possible. To this point, this discussion has assumed that in order to compete in high technology, Japan will have to find ways of being more innovative. But is this assumption valid? Must Japan innovate? Why would it not be possible for Japan to continue doing exactly what it has done so successfully in the past: namely, follow a conservative, second-to-market strategy, letting Amer- ica pay the high costs and take the risks of developing new industries and markets?
Why not simply continue concentrating on the less glamorous but commercially more decisive areas of process and production technology and mass marketing? Is not the history of technology replete win examples of inventors being soundly thrashed in the commercial marketplace by tech- nological second-comers? There is no doubt that a distinction needs to be drawn between technological innovation and commercial success.
The two are not necessarily linked. The first is no guarantee of the second. Nevertheless, because high technology sectors have steep learning curves and comparatively short product life cycles, the advantages of being first-to-market can be worm far more than the costs and risks of early investment.
First-comers can secure dominant market share, win brand name recognition, move down the learning curve, raise the bamers to entry and, in some cases, push second-comers right out of existence. Relying on foreign technology, as an alternative to domestic innovation, can leave companies at the mercy of foreign firms, which may or may not be willing to grant licenses in return for royalty payments. If patent holders believe Hey can gain more Man they lose by withholding basic patents, Japanese second-to-market firms could find themselves closed out of bur- geoning markets.count.developerinsider.co/campamento-steam-las-mariposas-monarca.php
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Moreover, Japanese companies must also accept the reality of attempts by the U. What would Jam anese firms do if there was a groundswell of technological nationalism that restricted Weir access to foreign know-how? Of course, for We latter, worst-case scenario to materialize, the interna- tional situation would probably have to deteriorate.
Even then, it would be hard to shut off Me flow of knowledge completely. In this era of high technology, We United States and Japan have common interests in keeping Me transfer of technology open. The volume of technology transfer across Me Pacific, including licensing, second-sourcing, original equipment man- ufacturer OEM agreements, and cross-licensing, is greater today than ever before.
To obtain foreign technology, therefore, the Japanese believe they must develop their own In order to obtain something of comparable value from abroad. If their perception is correct, it means that they must be able to innovate. Perhaps the most compelling reason why Japan needs to innovate is because the rapidly developing countries in Asia are moving quickly up the ladder of manufactunug value-added into, for example, the low end of consumer electronics.
They will have to move, for example, from consumer to industnal electronics, from hardware to software, from components to integrated systems. Japan can no longer exploit the advantages of late- comer status. It may not be able to follow a low-cost, low-risk strategy of second-to-market by capitalizing on low production costs.
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As comparative advantage shifts to the newly industrializing states, Japan will have to com- pete head to head with Me United States in what has been the traditional U. The challenge facing Japan will almost certainly be harder than the past challenge of industrial catch-up in the smokestack sectors. Known for their adaptability, however, the Japanese are Lying hard to overcome some of Me old institutional constraints that have impeded innovation in the past. China was the major market for automotive paints, as number of vehicles manufactured in have been increased in comparison to previous year.
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Among the current Chinese manufacturers of electric vehicles: BYD has been selling fully electric and hybrid cars in China for years, and it already has a U. The Asia Pacific region has appeared as a main automotive hub in terms of the market share of vehicle production. Only China exports more technology to the U. The main cause for this drift is the increasing Chinese automotive industry. Learn about the evolution of automotive body electronics and the importance of building blocks in this sector. Shenzhen Zhihong Textile Co.
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