Abstract
This chapter explores the tendency of large established Japanese companies to innovate autarkicly, that is, to rely on their own in-house R&D laboratories for new prototype products and to try to maintain control over the upstream components of a vertically integrated value chain. It shows that the major Japanese pharmaceutical companies do innovate autarkicly while major US and European companies rely more on in-licensing from biotechnology companies and, to a lesser extent, universities. It also considers whether large Japanese companies in other industries also innovate autarkicly and looks at collaborations between large companies and universities.
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