Capitalizing on innovation
the case of Japan
Rev. ed.
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Author
Contributions
- Hagiu, Andrei, 1977- - Contributor
- Harvard Business School - Contributor
Publication
2009 - Harvard Business School, Boston, Massachusetts
Language
English
Word Count
10,250 words, Guess
Page Count
41 pages
Identifiers
- OCLC Control Number424678332
- Open LibraryOL45198622M
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.
Subjects
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