The role of Japan-based R&D in global technology strategy

Abstract

For US techology-intensive corporations striving to develop effective global strategies, the establishment of R&D facilities in Japan is increasingly seen as a necessary means of tailoring products to the large local market, of effective technology scanning of Japanese competitors, and of tapping into Japan's growing capabilities in science and technology. The establishment and management of such facilities, however, is not easy task. A comparative study of US and Japanese computer firms identified major differences on five dimensions: the corporate research structure, the linkage between R&D and manufacturing, mechanisms of recruitment of R&D personnel, career patterns and the locus of responsibility for careers, and reward and incentive systems. These differences have important implications for US firms trying to set up research facilities in Japan, both in terms of managing those facilities effectively and in terms of integrating them into the firm's overall technology strategy.