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Digitalization of manufacturing process and open innovation: Survey results of small and medium sized firms in Japan

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  • MOTOHASHI Kazuyuki

Abstract

Digitalization has a transformative impact on innovation in firms and industry. In this paper, the results of the Survey on the Changing Nature of Manufacturing Processes and New Product Development are presented to show how the nature of Japanese SMEs in manufacturing industry is changing in the new IT era (AI, big data and IoT). It is found that a firm applying new IT, such as data analytics by machine learning, is likely to be involved in delivering digital services as well as new products (servitalization) and innovation ecosystem, interacting with multiple firms. Such firms address wider customer needs, instead of just meeting existing customer requirements, meaning that its product innovation is likely to happen in new business fields. In addition, a firm which extensively uses its customer data gains more sales and profit contributions from its new product.

Suggested Citation

  • MOTOHASHI Kazuyuki, 2019. "Digitalization of manufacturing process and open innovation: Survey results of small and medium sized firms in Japan," Policy Discussion Papers 19005, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:polidp:19005
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    File URL: https://www.rieti.go.jp/jp/publications/pdp/19p005.pdf
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    Cited by:

    1. Mohammad Soltani Delgosha & Tahereh Saheb & Nastaran Hajiheydari, 0. "Modelling the Asymmetrical Relationships between Digitalisation and Sustainable Competitiveness: A Cross-Country Configurational Analysis," Information Systems Frontiers, Springer, vol. 0, pages 1-21.
    2. Mohammad Soltani Delgosha & Tahereh Saheb & Nastaran Hajiheydari, 2021. "Modelling the Asymmetrical Relationships between Digitalisation and Sustainable Competitiveness: A Cross-Country Configurational Analysis," Information Systems Frontiers, Springer, vol. 23(5), pages 1317-1337, September.

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