BMEA 11/19

1. Why have Japanese IT firms missed the boat in terms of GPN?

- Legacy of past success? Curse of winners?

  ** In 2001, GDP of Japan was 4 times larger than that of China's

  ** In 2010, GDP of both countries are the same

  ** In 2030, GDP of China will be 4 times bigger than that of Japan's

  ** Why did Japan lose her leading position in mobile market?

  ** Incheon airport provided more connection to Japan cities than Narita airport. <-- What does this imply?

  ** Inflexibility of policy and legacy of past could cause this situation. 

- Strong vertical integration model : OEMs and parts suppliers are closely linked

- Parts makers are the real competitive edge of Japanese IT industry - Why didn't they venture overseas?

- How can we explain the big difference of profitability of set makers and parts makers?

2. What about Korean IT firms?

- Vertical or virtual integration model?

- Japanese model?

- They have done reasonably well in the last 2 decades

- Why have they shown better performance despite the fact that they have pursued vertical integration model?

- Should they change their business model in the coming years?

 ** They have relocated their assembly operations to China and other countries, but maintained vertical integration model

 ** Korean parts makers have followed set makers such as Samsung and LG to those oversea locations

 ** But there seems to be a tension developing in their vertical chain

3. Open System vs Closed system

- Both in production and R&D, there is competition between an open system and a closed one. 

- Competition in GPN

 * American firms as lead firms and Taiwan firms as participants. Taiwan firms have direct linkage with Silicon Valley and have both production and R&D in the main land. 

 * Japanese and Korean firms as lead firms and their domestic parts makers as participants; their overseas production network, including China, is also an extension of domestic vertical integration model

- Competition in Global innovation network

 * Recently American firms have followed an open innovation system, inviting participation of independent firms and individuals. In addition, there are very active firms that are linked large firms through M&As and others

 * Japanese and Korean firms have followed self-contained, closed R&D models, including their own overseas research labs. They are not closely linked with outside venture firms or inventors/universities. 

2010년 11월 19일