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Abstract<\/strong>: In face of growing global competition and up catching competitors from other Asia countries, business conditions for Japanese so far very successful medium-sized companies (hidden champions) become tougher. Previous success factors, such as high individual R&D spending, outsourcing of low-cost production, keeping high-tech knowledge hidden at home (even for customers), possessing the complete supply chain, life-long employment and producing highly individual solutions for the customers, more and more lose their might. Furthermore, experts suggest that Japanese companies waste some of their innovation potential, as they do not cooperate with each other and therefore fear the risk of being surpassed by larger competitors.<\/p>\n In order to help overcome the reluctance among companies to share technologies and join forces, in July 2009 METI (Ministry of Economy, Trade and Industry) established the Innovation Network Corporation of Japan (INCJ). It acts sort of as a national private-equity fund, with assets and credit guarantees of $9 billion. It aims to invest in promising intellectual property, with the idea of creating spin-off companies or encouraging consolidation. The INCJ aims to provide financial, technological and management support in order to promote open innovation, and the flow of technology and expertise beyond the boundaries of existing organisational structures.<\/p>\n Driver\u00a0<\/strong><\/p>\n Economic \/ Industrial<\/p>\n The further increasing global competition and up-catching companies from developing countries forces established players in industrialized countries to join forces and restructure the domestic economy.<\/p>\n <\/p>\n Political<\/p>\n Economics ministers are interested in strengthening the domestic competitiveness, i.e. by joining forces. They look at the total economic value of an industry and related jobs, rather than on single companies and their traditions.<\/p>\n <\/p>\n Obstacle<\/strong><\/p>\n Economic \/ Industrial<\/p>\n Resentments by very traditional companies, which are still bound to old ideas and do not see the necessity to cooperate \/ join such a network.<\/p>\n <\/p>\n Political<\/p>\n Shifts or closure of production facilities in the course of consolidation may bring up local politicians, which fear the loss of tax money and jobs in their area. The overall success of such a network \/ domestic approach relies strongly on including all relevant stakeholders.<\/p>\n <\/p>\n Indication<\/strong><\/p>\n Change in current innovation patterns<\/p>\n More state-driven and nationally focused industry wide, large-scale innovations, rather than closed doors research by single companies.<\/p>\n <\/p>\n Potential \u201cinnovation wild card\u201d<\/p>\n Governmental forced cooperation between domestic players in order to deal with the increasing pressure from foreign competitors. This would mean a drastic governmental intervention into the free market economy. Results uncertain.<\/p>\n <\/p>\n Sector specifics \/ cultural specifics<\/strong><\/p>\n That network is founded in Japan but is imaginable in other countries as well. Scotland has already established a similar public institution in 2003 (ITI Scotland).<\/p>\n <\/p>\n Source<\/strong><\/p>\n Internet<\/p>\n www.economist.com\/displaystory.cfm<\/a><\/p>\n
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