Roles of Exogenous Technologies in Vehicle Innovation: Cases from a Japan’s Automotive Parts Manufacturing Firm

Abstract

This paper explores the roles of technological innovations in the growth of Japan’s motor vehicle industry, mainly from technology spillover perspective from the early 2000s to today. An empirical analysis focusing on business performances, R&D investments, and patent applications taking a noteworthy unique case in Japan was attempted. Empirical analyses on the productivity of patent to technology stock, use of exogenous technologies for their own technological innovation on its Automotive Business Unit elucidated that innovation capabilities, incorporation of exogenous technologies, and profit generation makes a virtuous cycle of continuous technological innovation. Furthermore, we found that the range of technology spillovers is not only expanding along with the development of information communication technology but also superposing itself intricately between organizational (industry– firm–business unit) layers.