Innovation and Entrepreneurship in Japan: Politics, Organizations, and High Technology Firms

269 Pages·2005·3.083 MB·English

by  Kathryn Ibata-Arens

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Innovation and Entrepreneurship
in Japan
Japan’s innovators and entrepreneurs are a real success story against
theodds,survivingrecessioninthe1990stoprosperintoday’scompe-
titivebusinessenvironment.InnovationandEntrepreneurshipinJapan
exploresthestrugglesofentrepreneursandcivic-mindedlocalleaders
infosteringinnovativeactivity,andidentifieskeybusinesslessonsfor
aneconomyinneedofdynamicchange.
Ibata-Arensoffersanin-depthanalysisofstrategyinfirms,commu-
nities, and in local government. Innovation and Entrepreneurship
in Japan examines detailed case studies of high technology manufac-
turers in Kyoto, Osaka, and Tokyo, as well as bio-tech clusters in
America – demonstrating far-reaching innovation and competition
effects in national institutions, and firms embedded within local and
regionalinstitutions.
Thebookisessentialreadingforacademicsandstudentsofbusiness,
economics, political economy, political science, and sociology. It will
also appeal to investors, entrepreneurs, and community development
organizations seeking new perspectives on global competition and
entrepreneurshipinhightechnologyenterprises.
KATHRYN IBATA-ARENS is Assistant Professor in the Department of
Political Science, DePaul University, and Abe Fellow in the Faculty
ofCommerce,DoshishaUniversity.

Innovation and
Entrepreneurship in
Japan
Politics, Organizations,
and High Technology
Firms
KATHRYN IBATA-ARENS
camʙʀɪdɢe uɴɪveʀsɪtʏ pʀess
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo
Cambridge University Press
The Edinburgh Building, Cambridge cʙ2 2ʀu, UK
Published in the United States of America by Cambridge University Press, New York
www.cambridge.org
Information on this title: www.cambridge.org/9780521856447
© Kathryn Ibata-Arens 2005
This publication is in copyright. Subject to statutory exception and to the provision of
relevant collective licensing agreements, no reproduction of any part may take place
without the written permission of Cambridge University Press.
First published in print format 2005
ɪsʙɴ-13 978-0-511-13548-4 eBook (EBL)
ɪsʙɴ-10 0-511-13548-3 eBook (EBL)
ɪsʙɴ-13 978-0-521-85644-7 hardback
ɪsʙɴ-10 0-521-85644-2 hardback
Cambridge University Press has no responsibility for the persistence or accuracy of uʀʟs
for external or third-party internet websites referred to in this publication, and does not
guarantee that any content on such websites is, or will remain, accurate or appropriate.
ToThomasTakishiIbataandAgnesKazukoIbata

Contents
Listoffigures pagex
Listoftables xii
Acknowledgments xiii
Abbreviations xv
1 Introduction 1
1.1 Introduction 1
1.2 Twostories:SamcoandIkeda 2
1.3 RegionalvariationsinJapan’snationalinnovation
system 7
1.4 Innovativecommunities:basicingredientsand
sufficientconditions 9
1.5 Thebook’sargument:localpoliticaleconomyof
innovativecommunities 10
1.6 Outlineofthebook 14
2 Regionsandfirms 20
2.1 Introduction 20
2.2 Regions:industries,products,andtrends 22
2.3 Innovativelevelsofhightechnologyfirms 25
2.4 Firm-levelstrategies 28
2.5 FirmsinOta 30
2.6 FirmsinHigashiOsaka 35
2.7 FirmsinKyoto 40
3 Innovationtheory:firms,regions,andthe
Japanesestate 54
3.1 Innovation:definition,measures,andtheories 54
3.2 Firm-levelinnovationinJapan 59
3.3 Flexibleproduction 61
3.4 Flexiblespecialization 67
vii
viii Contents
3.5 Industrialdistricts 74
3.6 Localnetworks 78
3.7 Comparingtheoriesofinnovation 81
3.8 Conclusion:bringingthelocal(morefully)
backin? 85
4 Japan’squestforentrepreneurialism 92
4.1 TheClusterPlan 92
4.2 Executivesand(former)bureaucrats 93
4.3 1990s:badpolicy,poorlyimplemented 99
4.4 2000s:whenallelsefails,gotoHarvard 101
4.5 What’s‘‘new’’abouttheClusterPlan? 105
4.6 Mid-2000s:checkingonthepatient 110
4.7 Conclusion:toomuchGesellschaftandnotenough
Gemeinschaft 111
5 Networksandfirms 114
5.1 Introduction 114
5.2 Overviewoffirmexperiences 121
5.3 NetworksinOtaWardO-Net 122
5.4 NetworksinHigashiOsaka:TOPS 125
5.5 NetworksinKyoto:Kiseirenanditsspin-offs 127
5.6 Conclusion:seedsofchange 132
6 TheKyotoModel 138
6.1 WhatistheKyotoModel? 138
6.2 Serendipityinhistory 139
6.3 Modelfirms 141
6.4 LevelsoftheModel:region,firm,entrepreneur 148
6.5 Amodelforotherplaces? 159
7 Regionsincomparison 162
7.1 Introduction:buildinginnovativecommunities 162
7.2 Coreconstructs 164
7.3 Hypotheses:people,institutions,andinnovation 166
7.4 St.Louis:thebio-beltoftheAmericanMidwest 168
7.5 Entrepreneurandfirm-levelchallenges:asummary 176
7.6 Innovativecoalitionsandlocalvisionaries 184
7.7 Whatittakestomovetheregionforward 186
7.8 St.LouisandKyotocompared 187
7.9 Germany 190