International Comparison of IT innovation and analysis of Japanese electronics firm's business strategy

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In this study, international competitiveness of Japanese electronics firms are evaluated by both industry and firm level analysis. In industry analysis, we have constructed the comparable database of electronics focusing on Asian countries, such as China, Korea, Taiwan and Japan. In addition, economic model analysis is created for simulation of Japanese firms' business strategy until 2020. The model is consisted by three steps, i.e., (1) estimating demand function of final products, (2) derivation of component demand and (3) forecasting of the share of Japanese firms by product category. In firm level analysis, we have constructed the linkage data of financial account and patent to investigate in product and technology strategy. In process of "selection" and "concentration" in the late 1990's, Japanese electronics conglomerate streamlined the number of business lines, but still invested on wide range of technology fields. It is found that diversification in business lines which are common technology background gives better performance, so that the Japanese firms can sustain its conglomerate strategy, but should focus on the areas which are based on common technology strength.