R&D and Standardisation Activities of High Technology Industries in Japan in the Information and Communications Technology Services Field

Abstract

This study aims to elucidate the relationship between Research and Development (R&D) and standardization of Information and Communications Technology (ICT) services in high technology industries of Japan. The study focuses on Intellectual Property (IP) standardization activities as a key factor in corporate innovativeness. The author examines the magnitude of the effects of R&D and standardization on patent applications in the Japanese electric machinery industry, which provide ICT services and includes the electric appliance manufacturers. The number of patent applications is known to have a positive impact on corporate innovativeness and can be used as a proxy for determining this magnitude of the impact. Pearson correlation coefficient between the number of persons engaged in IP standardization activities and the number of patent applications is found to be positive, but smaller in comparison with the number of persons engaged in R&D activities. However, the impact of standardization is larger than what is generally anticipated. These findings might assist corporate managers in decision making pertaining to allocating human resources.