Creation of relational assets through the ‘library of equipment’ model: an industrial modernization approach of Japan's local technology centres

Abstract

SMEs with a weak internal R&D capacity show the tendency to shy away from using external sources of technical expertise. The tendency deters providers of industrial modernization services from supporting such structurally weak SMEs. This paper examines how Japan's local technology centres -kosetsushi -remove the bottleneck and reach out to a significant proportion of SMEs with a weak R&D capacity in their localities. Kosetsushi centres sustain habitual interactions with client firms through 'low information gap' services solving immediate needs and lead the clients to a riskier and longer path toward innovation capacity building. This gives kosetsushi centres a position distinct from universities and consultancies in the regional innovation system. While long-term relationships between kosetsushi centres and their client firms can increase switching costs and produce lock-in effects, a case study of two kosetsushi centres illustrates the importance of 'low-information gap' services and relational assets created thereby to the modernization of SMEs with a weak internal R&D capacity. The paper calls for longterm commitment by the public sector if it addresses the issue through modernization services.

Complementarities Between Universities and Technology Institutes: New Empirical Lessons and Perspectives

“…However, there has been little research undertaken on this aspect and there are few studies that investigate the complementarities or redundancies among TIs and universities, an exception being Izushi (2005), which evaluates and compares the opinions of firms that cooperated in projects with both Kosetsushi Centres and universities. His results show that users rank the Kosetsushi Centres significantly higher in terms of their: (i) ability to perform the services promised; (ii) ability to communicate and (iii) ability to provide prompt services, but rate them as equal to universities in terms of the level of technical knowledge received by users.…”

“…They provide firms with a broader portfolio of services that differ from those offered by universities and private firms (Leitner, 2005). These research institutions focus not only on applied research and technology development, but also on activities such as consultancy, technical assistance, diagnosis and so on, thus reaching firms that otherwise would have no such support (Izushi, 2005). They can be public or privately owned and, although they usually receive public funding, private sources of funding are increasing (Leitner, 2005).…”

Evaluating the strategy of local public technology centers in regional innovation systems: evidence from Japan

“…After the two develop mutual trust based on a long-term relationship, small firms employ more interactive technological services with larger information gaps, such as joint research and funded research. Therefore, the empirical results of Izushi (2003Izushi ( , 2005 imply that a successful relationship between small local firms and local public technology centers is evolutionary.…”

“…Rectangles in the upper portion of the figure denote spillover channels with a relatively large information gap between the demand-and supply-sides of technological services. Rectangles in the lower part denote spillover channels with a relatively small information gap (Izushi, 2003(Izushi, , 2005. Izushi has argued that channels of technology transfer from the public sector to the private sector can be characterized by the degree of information gaps between them.…”

The impact of research and technology organizations on firm competitiveness. Measurement and determinants

“…The characteristics of R&D projects differ greatly from the characteristics of training courses, technical services or consultancy activities (Izushi 2003(Izushi , 2005. The requirements of trust, good communication and previous expe rience differ widely in these contexts (Bayona et al 2001;Carrincazeaux et al 2001;Meeus et al 2004).…”