Capitalizing on innovation
Subtitle: the case of Japan
By: Robert Dujarric and Andrei Hagiu
Contributors: Hagiu, Andrei, 1977-; Harvard Business School
Edition: Rev. ed.
Series: Working paper / Harvard Business School -- 09-114; Working paper (Harvard Business School) -- 09-114.
Publisher: Harvard Business School
Published: 2009
Place of publication: [Boston]
Language: eng
Number of pages: 41
Description: Japan's industrial landscape is characterized by hierarchical forms of industry organization, which are increasingly inadequate in modern sectors, where innovation relies on platforms and horizontal ecosystems of firms producing complementary products. Using three case studies - software, animation and mobile telephony -, we illustrate two key sources of inefficiencies that this mismatch can create. First, hierarchical industry organizations can "lock out" certain types of innovation indefinitely by perpetuating established business practices. Second, even when the vertical hierarchies produce highly innovative sectors in the domestic market, the exclusively domestic orientation of the "hierarchical industry leaders" can entail large missed opportunities for other members of the ecosystem, who are unable to fully exploit their potential in global markets.
Notes: "April 2009, revised October 2009"--Publisher's website.

Includes bibliographical references.