Skip to main content

Über dieses Buch

This book provides some new ideas on the conceptualization of a shift in technological paradigm, and it explores in depth the relevance of this concept for research on innovation systems. It examines text-mining software and analyzes patent data as well as academic and business journals to illustrate the paradigm shift of newly emerging technologies, such as the all-solid-state battery and automatic driving for electric vehicles, and surgical robots. It also explores the critical role of emerging software technologies by examining US, EU, and Japanese patent statistics.

Highlighting the paradigm shift of technologies since the 1990s and the geographical dispersion of innovative capabilities, it identifies essential trends toward new innovation systems as well as the concentration and dispersion of national and corporate R&D capabilities that have taken place as a result.

In this new paradigm, the competitiveness of a company is decisively determined by other innovations in systems and management. Since the 1990s, when a network economy began to be established and technological know-how came to be easily transferred across borders, the changing structure of technological activities has required organizations with traditional integral and closed architecture models to move toward open innovation or modular architectures. These changes involve wider technological areas and cognitive diversity among international inter-firm and intra-firm R&D networks.

This book is highly recommended not only to academicians but also to business people seeking an in-depth and up-to-date overview of the paradigm shift of technologies and new innovation systems.



Chapter 1. The Philosophy of Paradigm Change in the History of Social Evolution

A technological paradigm identifies the coherent features consistently present in the evolution of an innovation system over time. These shared characteristics refer to a widespread cluster of innovations during a given era that rely on a common set of scientific principles and on similar organizational methods. The idea of an overarching paradigm that depicts commonalities in innovation efforts may be applied at the level of an industry, a technical field, or in society as a whole, as in the case of a techno-socio-economic paradigm. Occasional paradigm shifts entail some change in the framework for innovation, while preserving certain features of the old ways in a new synthesis. Thus, paradigm shift takes the form of an Hegelian evolutionary or dialectical process. The evolution of an innovation system as a whole derives from the interaction or co-evolution of its central elements: knowledge, institutions, and technology in production. While conventional science isolates causal associations between specific parts of a system, Hegelian conceptual reasoning addresses the combined and interconnected movement of a complex relational system with multiple interdependencies. In the light of this contention, I argue that we should move away from age-old debates over whether social evolution or development is driven primarily by knowledge, by institutions or by the forces of production. Our attention should now turn instead to how these parts move together in an evolving system, and how their mutual goodness of fit adjusts during phases of paradigm shift and realignment.
John Cantwell

Chapter 2. Paradigm Changes in Technological Knowledge Connections in Urban Innovation Systems

The late twentieth century marked the advent of a new information based and internationally networked paradigm, much different from its old science-based predecessor. As we enter the diffusion stage of this paradigm, we expect to see changes in the way organizations and locations interact with one another. We envision that cities and clusters will not rely exclusively on local knowledge sources but will need to combine local with complementary geographically distant (trans-local) knowledge sources. This chapter contributes to the literature on the changing geographic composition of knowledge connections in the new paradigm. Using social network analysis techniques, we construct a unidirectional network of 62 selected cities, since backward citations point in just one direction to prior knowledge sources. We observe how the spatial distribution of our technological network changes during our time period, both in the aggregate and at the level of five selected sectors. The nodes in our network represent cities while the edges represent citations from one city to another. We calculate network statistics such as degree strength and eigenvector centrality to determine which cities have gained influence over time and which cities have become relatively less important. Overall, we observe that the technological knowledge network between our cities is getting denser and more dispersed over our time period. We see that many developing cities are gradually increasing in their centrality to our constructed network and that this increase in centrality is more pronounced in certain sectors, characteristic of the new paradigm, such as the ICT sector. We also observe that while developing cities have become important sources of technological knowledge, they still lag in terms of the knowledge they receive from external sources.
Salma Zaman

Chapter 3. World-Wide Dispersion of Research and Development (R&D) Capabilities

This paper examines to what extent research and development (R&D) capabilities have geographically disseminated and dispersed worldwide, analyzing scientific papers and patents as R&D outputs. As a result, global dispersion was revealed using Lorenz curve and Gini Coefficient, in the main field of scientific journals from INSPEC; Physics, Electrical Engineering, Electronics, computer and control engineering including Information Technology, and Mechanical engineering. In the case that we examine foreign invented US patents excluding domestically invented patents in the US, we can see geographical dispersion among nationalities since 1990, among others, much more than all the US patents including domestically invented patents in the US. Herfindahl-Hirschman (HH) indicator also shows the decline in the degree of the concentration ratio. The results obtained in this paper is that the number of nationalities of authors’ affiliation and that of nationalities of affiliations of U.S. patent inventors have increased and diversified. Especially, R&D capabilities measured by nationalities of authors’ affiliation remarks that point, rather than by those of US patent inventors, which means that more and more countries have improved R&D capabilities, “R” in particular.
Takabumi Hayashi, Atsuho Nakayama

Chapter 4. International Standardization of the New Technology Paradigm: A Strategy for Royalty-Free Intellectual Property

Since the establishment of the World Trade Organization in 1995, international standardization of intellectual property (IP) has become more important as multinational enterprise form their international competitive advantages. This activity means “the internationalization of IP.” In addition, Internet of Things (IoT) has become important in recent years, and the activities of related technologies are being aggressively promoted. What is important in IoT is the development of an environment that can utilize this technology regardless of industry type. In other words, it is “inter-industrialization of IP.” Today’s technological development competition is inevitably the “inter-industrialization of IP” while at the same time the “internationalization of IP.” Moreover, when internationalization and inter-industrialization are promoted at the same time, it turns out that there is a big change in the role of IP. In the past, one of the roles of IP was to generate a source of revenues from royalties, but what is now increasing in IoT-related business fields is actually royalty-free. Thus, a paradigm shift in IoT field has occurred. Now there are more cases where patent holders have made their IP royalty-free. Consequently, it is royalty-free IP that holds the key to the paradigm shift in the IoT field. Why royalty-free cases are increasing is examined in detail along with the phenomenon’s background in this chapter. Furthermore, this chapter aims to clarify what kind of technology strategy is required for MNEs promoting technology development in such a complex business environment. At the same time, a new “viewpoint of inter-industrial business studies” is added to existing international business studies.
Yasuro Uchida

Chapter 5. New Roles for Japanese Companies at the Knowledge-Based Economy

Adaptation to Newly Emerging Techno-Economic Paradigm
Information technology (IT) lies at the heart of today’s techno-economic paradigm. In the latter half of the twentieth century, Japanese companies succeeded in achieving high international competitiveness in the home appliance and industrial electronics markets by making technological progress in various hardware, including microfabrication technologies. However, as symbolized by the emergence of the term “knowledge-based economy,” the relative importance of software, rather than hardware, in IT began to increase during the transition from the twentieth to 21st century. Successful adaptation to this change in techno-economic paradigm is essential to maintaining international competitiveness. However, Japanese companies did not succeed in shifting their R&D focus to software. This failure to adapt in a timely manner is considered one of the important reasons for Japanese companies’ prolonged stagnation. This paper draws on patent and magazine article data to verify that the core of techno-economic paradigm is changing from hardware to software and that Japanese companies failed to adequately adapt to this change.
Fumio Komoda

Chapter 6. Paradigm Shifts in the TFT-LCD Industry and Japan’s Competitive Position in East Asia

This chapter analyzes Japan’s changing competitive position in the TFT-LCD industry over the past several decades. Based on the analysis of multiple factors that affected Japan’s decline, I identified 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 declining competitiveness of a country and a firm cannot be fully understood without closely relating it to the shifts in the paradigm of the industry. In addition, this chapter shows how the paradigm shifts of the industry, the changing competitive positions of a country and a firm, as well as the changing locus of innovation for a company, i.e. domestic vs. international and in-house versus collaborative, are aligned with one another.
Kazuhiro Asakawa

Chapter 7. Business-University Collaboration in a Developing Country in the Industry 4.0 Era—The Case of Hungary

Emerging economies, as well as Hungary in Europe, are frequently host countries to multinational companies. For both parties it is a great challenge to build relevant knowledge- generating capacities which are attractive in respect of collaboration. In such collaborations those countries on the receiving end of foreign direct investment have the ambition to become more than mere pools of knowledge assets for multinational companies. An insight into Hungarian attempts to achieve this aim under difficult circumstances might be useful for other countries in similar situations. In recent years the majority of Hungarian business research and development expenditure has come from companies wholly-, or majority-owned by foreign interests. This high proportion indicates the significant role of foreign companies in the Hungarian research agenda and in business-university collaboration. This chapter focuses on how foreign companies are shaping business-university collaboration in research and experimental development and touches upon the role of government as facilitator. The subjects of research and development contracts and collaboration depend on the environment and on both potential partners—that is to say, by the types of demand generated by companies, and by how relevant are the competences and capabilities of universities in meeting these demands. Are they moving towards the cutting edge agendas inherent in Industry 4.0 and globalisation? Method of research: analysis of available data; information from websites and interviews with key actors who are partners in collaboration. The chapter also summarizes a few lessons which may be relevant for other economies too.
Annamaria Inzelt

Chapter 8. Text Mining Method for Building New Business Strategies

Focusing on the Neurosurgical Robot
In any time, it has been essential to acquire knowledge of customer needs and global trends of technological progress for proper selection and concentration strategy planning, which is decisive for long-term growth of the company. However, with the change in innovation paradigm, the methods used for its acquisition have also changed. With the era of big data, text mining that gains knowledge necessary for this planning from unstructured natural language with weak affinity with relational databases has attracted attention recently. However, in order to obtain highly accurate and reliable knowledge that can contribute to company decision-making, the current natural language processing algorithm is not sufficient. Current text mining method, which is limited to bird’s eye viewing type aimed at capturing the entire text data roughly, is unsuitable for finding out important knowledge written only in a very small part of the text data. Therefore, this paper presents the virtual case of a company planning a new neurosurgical robot project and applies pinpoint focus type text mining technique to acquiring technological knowledge from high-impact peer-reviewed academic journals.
Fumio Komoda, Yoshihiro Muragaki, Ken Masamune

Chapter 9. Paradigm Change in the History of the Pharmaceutical Industry

The history of the pharmaceutical industry is told within three major paradigms, each of which arises through a continuous interaction between science, technology, business organizations, national institutions, and the wider growth of economic and social developments. The first paradigm begins in the mid-19th century, when the influence of chemistry on medicinal research had reached a degree of maturity, and ends with the outbreak of WWII. The second paradigm requires a better understanding of organizational features that differ from the old-line pharmaceutical companies that emerged in the 19th century. These companies were largely influenced by new institutions, restrictive environments, and turbulent decades. The third paradigm reflects geographic shifts of specialization in pharmaceuticals and changes in the composition of organizations involved; its setting is more collaborative and networked than previous paradigms. The shift between paradigms in this industry is therefore associated with the character of international business efforts and the context for which these efforts occur, with implication for firm responses to new developments in science and technology, and theories in international business, strategy, innovation, and economic geography.
Sarah Edris

Chapter 10. Knowledge Transfer and Creation Systems: Perspectives on Corporate Socialization Mechanisms and Human Resource Management

This study explores the role played by corporate socialization mechanisms (CSMs) and human resource management (HRM) practices in inter- and intra-unit knowledge flows and creation systems in multinational corporations (MNCs), especially focusing on professional service firms (PSFs). Drawing on a longitudinal case study of Cambridge Technology Partners (CTP), which was established during a paradigm shift in the consulting industry arising from the advancement of information technology (IT), the findings of this study suggest that CSMs are incorporated into HRM practices. When CTP was a global consulting company, CSMs worked as an infrastructure for transferring knowledge from the headquarters (HQs) to a focal subsidiary. HRM practices were designed to enhance and practice the HQs’ goals of achieving global competitiveness. Specifically, training and development practices played a role in transferring knowledge from the HQs to a focal subsidiary at the corporate level, while tacit and explicit knowledge were transferred from senior to junior consultants at the individual level. At present, sharing the corporate philosophy within CTP has generated a high project success rate in Japan and laid the foundation for further knowledge creation for CTP. HRM practices are designed to enhance CTP’s business model, methodology, and corporate culture and to create new knowledge. Training and development practices enhance the creation of new knowledge within the company. Additionally, performance appraisals and incentive practices are designed to encourage consultants to create new knowledge.
Tamiko Kasahara

Chapter 11. Redefining the Internationalization of R&D Activities: How Far Have the Firms’ R&D Members of US and Japanese Companies Been Diversified?

This paper examines that the role played by foreign researchers and engineers engaged in R&D activities in the US and the overseas R&D activities of US multinational corporations are no longer negligible. This paper focuses on the fact that foreign scientists and engineers residing in the US make considerable contributions as inventors of US patents, and it examines the extent to which the internationalization of R&D by US companies would result if the outcomes of their activities in the US were included in the internationalization of R&D. Specifically, the level of internationalization of R&D is verified by studying the nationality of the inventor’s institution (i.e., IBM), which has consistently been the top US patent collector from 1993 to 2017. Additionally, looking at Canon Inc., which has been exceptionally ranked in the top five from 1985 to 2017 in both the US and Japan, this paper examines the inventors and the nationalities of the organizations to which the inventors work, thereby confirming the internationalization of the company’s R&D in the same way. Finally, we examine how much the internationalization of R&D activities differs between IBM and Canon.
Takabumi Hayashi

12. Correction to: Knowledge Transfer and Creation Systems: Perspectives on Corporate Socialization Mechanisms and Human Resource Management

In the original version of this chapter, the following belated correction has been incorporated in Table 10.1 of Chapter 10:
  • 2016 • Present-CTP was nominated for the best company award from Great Place to Work® Institute
    2017 • Present-CTP was nominated for the best company award from Great Place to Work® Institute
    2018 • Present-CTP was nominated for the best company award from Great Place to Work® Institute
The erratum chapter has been updated with the change.
Tamiko Kasahara
Weitere Informationen

Premium Partner


    Die im Laufe eines Jahres in der „adhäsion“ veröffentlichten Marktübersichten helfen Anwendern verschiedenster Branchen, sich einen gezielten Überblick über Lieferantenangebote zu verschaffen.