2006 Fiscal Year Final Research Report Summary
R&D, Intellectual Property Right, Market Competition of Japanese Firms Loss of International Competitiveness
| Project/Area Number |
17530189
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Applied economics
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| Research Institution | Keio University |
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Principal Investigator |
ANEGAWA Tomofumi Keio University, the Graduate School of Business Administration, Professor (80159417)
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| Project Period (FY) |
2005 – 2006
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| Keywords | R&D / Japanese Firm / investment / patent / Productivity |
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| Research Abstract |
Japanese government intends to enhance economic growth by promoting R&D activities and protecting intellectual property right. Though this policy is widely accepted by policy makers as well as the public, there is fundamental drawback. In spite of the huge R&D investment in the past twenty years and the accumulated patents of Japanese corporate sector, the Japanese firms and industries seem to be losing their competitiveness against foreign counterparts. This study intends to analyze reasons behind this unexplained phenomenon.
From R&D oriented industries such as electrical, electronics, pharmaceutical, and biotechnology, I chose several hunched largest R&D investment firms located worldwide. By collecting financial data and patent data of these firms, I investigate the following questions.
Question1. How do Japanese firms differ from foreign firms in profitability, productivities, and value? How is performance related to R&D investment and patent acquisition?
Question2. What determines f
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irm performance, R&D investment, and patent acquisition?
Question3 How Japan's science and engineering policy affect firm performance?
I first construct database based on corporate financial data and US. patent data. Second, this study estimates "patent production function". I evaluate the effects of industry, nationality, firm size, and R&D investment. The results, however, are similar to those of previous studies. Japanese firms are found to be less efficient in producing "important" patent.
Second, this study estimates a relationship among R&D investment and firm performance. I find that the significant differences across industries, and that R&D investment is concentrated in handful largest firms in every industry, which fact makes difficult to estimate the effects empirically. Current profit does not induce R&D investment but reduces it. Finn value measured in the q-ratio increases R&D investment. Because of widespread M&A and multi-industry nature of large corporations, raw corporate data should be streamlined to find empirical results. Corporate governance, organizational form, Japanese market competition might cause poor performance of Japanese corporations in that R&D does not increase firm performance. Less
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