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Codification, patents and the geography of knowledge transfer in the electronic musical instrument industry

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Abstract

Recent research in economic geography has emphasized tacit knowledge as the basis of industrial learning. In contrast, codification and the practices of industrial writing have received little attention for the roles they play in mobilizing knowledge across space. This paper offers insight into the geographies of codification through an examination of technology transfer in the electronic musical instrument industry between 1965 and 1995. The research draws on a variety of primary and secondary data that include interviews with inventors, biographical accounts and patent analysis. These sources offer perspective on the career trajectories of three U.S. inventors who transferred knowledge from various contexts in California's high-tech industry to the Japanese firm, Yamaha. Conceptually, the paper draws on the actor-network theory and Latour's idea of translation to highlight the detours inventors must take to register novelty. The analysis reveals the problematic nature of codified knowledge and its transfer; in this case codified knowledge was mobile internationally but not locally, at least until it reached Japan. The paper argues for the need to understand how texts such as patents are produced-the context of their authorship, the geographies of their circulation and their efficacy for shaping further innovative practice. © 2006 Canadian Association of Geographers/L'Association canadienne des géographes.

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... p.300) 59 Accumulation of data in music systems in this respect also engaged in a cultural reinterpretation of tacit knowledge. For the Japanese manufacturers, the initial acquisition of 59 This refers to the Electronic Musical Instrument Industry as discsussed by Reiffenstein, 2006 knowledge could be arguably surmised as business acumen. Reiffenstein locates 'knowledge conduits' and 'actor network theory' as the means by which knowledge transfer occurs. ...
... Reiffenstein suggests, "A useful, though limited, approach to understanding spatial knowledge transfer is to consider the conduits (texts, people or artefacts) through which it is exchanged." (Reiffenstein, 2006. p.301) ...
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Intellectual property? Five years ago, that phrase wasn't even in the vocabularies of many CEOs, let alone a part of their business strategies. Indeed, many chief executives still regard patents, trademarks, copyrights, and other forms of intellectual property as legal matters best left to the corporate attorneys. But the burgeoning knowledge economy has given rise to a new type of CEO and a new type of business competition-one in which intellectual assets, not physical ones, have become the principal sources of shareholder wealth and competitive advantage. And therein lies one of the next great corporate challenges: figuring out how to unlock the hidden power of patents. In this article, authors Kevin Rivette and David Kline describe how the strategic management and use of patents can enhance a company's commercial success in three broad ways: by establishing a proprietary market advantage, by improving financial performance, and by enhancing overall competitiveness. They present real-world examples of effective and ineffective patent management strategies-for example, comparing Dell's aggressive patenting of its direct-sales business model with Wat-Mart's looser protection of its unique business systems. They describe common but effective patenting techniques such as clustering and bracketing, both designed to block out or hamper competitors in the market. For both traditional and new-economy businesses, such as Amazon.com and Priceline.com, leveraging patents properly can produce benefits such as reduced corporate risk, the ability to anticipate and react to market shifts, and, ultimately, increased shareholder value and profits.
Book
This unique book – informed by ten years research – focuses on intellectual property and charts the global transition towards intellectual capitalism with technology-based corporations as prime movers. The book gives a comprehensive overview of the history and fundamentals of intellectual property as well as a textbook introduction to the field. The book sheds new light on the economics and management of intellectual property in large corporations in Europe, Japan and the US. Special emphasis is given to strategies for the acquisition and commercialization of new technologies, patent strategies and strategies for secrecy and trademark, technology intelligence and corporate management of intellectual property. It includes an in-depth study of leading large corporations in Japan – including Canon, Hitachi, Toshiba and Sony. In conclusion, it explores the possible evolution of intellectual property management towards a distributed intellectual capital management in the context of a wider transition to intellectual capitalism, fueled by new technologies in general and new infocom technologies in particular. The book will have particular appeal to practitioners such as managers, economists, engineers and lawyers as well as students and scholars of industrial organization, economics of innovation and technical change, and management of technology.
Article
In this paper we address two problems related to what can be claimed about the powers of decentralised business networks. The first concerns the role of tacit knowledge and proximity in securing competitive advantage. Recently, in a strand of the literature concerned with the differences between tacit and codified knowledge, it has begun to be claimed that the superiority of relational and geographic proximity (for example, intense face-to-face contact, local industrial clusters, and districts) over formally constituted and distantiated networks of knowledge and learning. In the first part of the paper we dissent from this interpretation by questioning the separability of the two forms of knowledge and by suggesting that business networks largely dependent on local tacit knowledge and incremental learning may prove to be inadaptable in the face of radical shifts in markets and technologies. The second problem regards the relationship between knowledge and the oganisational structure of firms and business networks. In the second half of the paper we focus on the challenge facing competence-based large firms which draw on localised sources of knowledge to argue that competitive advantage is crucially influenced by the ability of firms to mobilise and integrate diversified forms of knowledge (tacit and codified), rather than to specialise in one form. We also argue that the imperative to sustain continuous learning is adding a new architecture of organisation and governance to that traditionally associated with the reduction of transaction costs, rather than replacing it, as is implied in the new literature which privileges the firm as a nexus of competencies. Thus, a dual structure seems to be emerging, which is composed of a decentralised network of reflexive and interactive centres to advance core competencies and learning and overlaid upon a more traditional hierarchical structure for the regulation of noncore activities.
Article
Technology and Culture 41.3 (2000) 460-484 The development and international success of the Japanese consumer electronics industry in the postwar period is often portrayed as the result of a collaboration between big business and government ministries. This portrayal neglects an important foundation for the success of this industry: the existence of a culture of "tinkering" with consumer electronics in Japan. After World War II a network of inventors, tinkerers, and small businesses developed an unofficial sector of radio manufacturing, which grew to include radio magazines, books, and standard-setting trade associations. This network helped launch the television kit industry, which lowered the price of home-use televisions, making commercial broadcasting viable in Japan. Even after mass-produced televisions had driven television kit manufacturers out of business, the large Japanese consumer electronics manufacturers used the network of repair shops that had assembled television kits to build a service network. These local service providers, close to their customers and to the service problems of the products, gave manufacturers the feedback they needed to create products that met consumer needs, enabling Japanese industrialists to compete effectively in the export market. Today the Japanese electronics industries are dominated by big business, while amateurs and hobbyists play only a minor role, primarily as ham radio operators. Historically, however, the electronics industry began with radio, a field founded by amateurs and tinkerers. In the early stages of the radio industry, radio listeners typically built their own receivers; some became semiprofessionals and opened radio shops. Small-scale manufacturers sprang up to supply components. Amateur hobbyists, semiprofessionals, local radio stores, and small manufacturers for radio components formed an "unofficial" sector of the radio and electronics industry. In comparison, large-scale producers and assemblers of equipment, government, and public institutions made up its "official" sector. The radio boom grew out of the liberalized political climate of postwar Japan. After Japan's defeat the government ban on reception of foreign broadcasting was lifted, and commercial broadcasting began. As a result of greater programming, radio (and later television) tinkering expanded, and the dismantling of the Japanese military made military surplus electronics components available and inexpensive. The Allied occupation forces promoted radio production, using broadcasts to democratize Japan. Later, public institutions such as the research laboratory of Nihon Hoso Kyokai (NHK, the Japan Broadcasting Corporation), professional bodies of engineers, government ministries, and local government encouraged the hobby of radio, organizing training courses in radio construction and repair. Small-scale component manufacturers flourished as radio tinkering expanded. The television boom, beginning with the first Japanese television broadcasts in 1953, had similar roots in the culture of tinkering. Tinkerers wanted to build their own television receivers, but it was far more difficult to put together a television from scratch than to construct a radio. As a result, component manufacturers developed key components for television receivers and put television kits on sale. The kits were welcomed by hobbyists and semiprofessionals, and the television receivers they built contributed to the popularization of television. Some small manufacturers eventually grew into middle-sized companies, and after the popularization of receivers had been achieved, larger companies took over the mass production of televisions. Though the unofficial sector of the Japanese television and radio industry declined in the 1960s, it had a profound influence on the success of the Japanese electronics industry in export markets. The culture of tinkering and the amateur entrepreneurship of the early Japanese radio and television industry helped create an electronics industry attuned to customer demands for quality and service. Many of the tinkerers who began their careers as radio and television kit assemblers and owners of small repair shops went on to staff the service companies affiliated with large Japanese radio, television, and electronics manufacturers. With their firsthand knowledge of customer expectations and their knowledge of components, these tinkerers gave critical feedback to their new employers to help bring about the high-quality, high-reliability, low-cost consumer electronics that won over export markets in the 1960s. Radio broadcasting was begun in Japan in 1925 by the Tokyo Hosokyoku (Tokyo Broadcasting Station). This later became the Nihon Hoso Kyokai, an incorporated association under...
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The background to the creation of an international resource organisation is discussed. The author goes on to describe various activities of the Foundation, including the provision of hard-to-obtain CDs and access to other materials of interest to the electroacoustic community. The Foundation maintains a substantial presence on the World Wide Web: http://www.emf.org
Book
This book shows how firms can generate and nurture ideas. Weaving together lessons from such international leaders as Siemens, Unilever, Skandia, and Sony, along with their own first-hand consulting experiences, the authors introduce knowledge enabling - the overall set of organizational activities that promote knowledge creation - and demonstrate its power to transform an organization's knowledge into value-creating actions. They describe the five key "knowledge enablers" and outline what it takes to instill a knowledge vision, manage conversations, mobilize knowledge activists, create the right context for knowledge creation, and globalize local knowledge. The authors stress that knowledge creation must be more than the exclusive purview of one individual - or designated "knowledge" officer. Indeed, it demands new roles and responsibilities for everyone in the organization - from the elite in the executive suite to the frontline workers on the shop floor. Whether an activist, a caring expert, or a corporate epistemologist who focuses on the theory of knowledge itself, everyone in an organization has a vital role to play in making "care" an integral part of the everyday experience; in supporting, nurturing, and encouraging microcommunities of innovation and fun; and in creating a shared space where knowledge is created, exchanged, and used for sustained, competitive advantage. This book puts practical tools into the hands of managers and executives who are struggling to unleash the power of knowledge in their organization.
Article
The notion of sustainable development, which is currently being proposed as the panacea to many of the most pressing environmental problems, reflects the environmental movement's ambivalent relationship to scientific knowledge: on the one hand, science is used to legitimize the ‘green case’; on the other, it is seen as responsible for many of the current environmental problems. Local, or traditional, knowledge is often proposed as a superior form of knowledge as it lies outside science and is seen as representing a closer affinity with ‘nature’. However, local knowledge, like scientific knowledge, can be reified, given virtues it simply does not possess. In this paper we examine the two categories of scientific and local knowledge. Using the work of sociologists of science such as Bruno Latour, we show that science is not different to local knowledge because it has a superior access to ‘reality’ but because it is more powerful, i.e. it is able to act over greater distances. We then draw upon anthropological work on the use of local knowledge in traditional agriculture to show that this system of knowledge is often ‘scientific’ but is more intimately related to local environments. However, local knowledge is not always in ‘harmony’ with such environments and can result in serious degradation. It should not, therefore, be counterposed as a ‘greener’ alternative to scientific knowledge. Rather, as with science itself, local knowledge should be investigated in ‘action’. We conclude with a call for a new social science approach to the relationship between nature and culture and the local and universal which stresses ‘hybridity’ i.e. the extent to which these categories are inextricably mixed.
Article
Complementing existing approaches on national innovation systems (NISs) and regional innovation systems (RISs), the proposed spatial innovation systems (SISs) approach incorporates a focus on the path-dependent evolution of specific technologies as components of technological systems and the intermingling of their technological paths among various locations through time. SISs utilize spatial divisions of labor among several specialized RISs, possibly in more than one NIS. The SIS concept emphasizes the external relations of actors as key elements that transcend all existing systems of innovation. The integrating role of these relations remains inadequately understood to date. This poses a challenge for future research.
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Identifies and assesses three types of industrial districts that exist as alternatives to the "new industrial district" model, to remark on the limits of a locally targeted development strategy. Industrial districts are defined as sizable and spatially delimited areas of trade-oriented economic activity with a distinct specialization. "Sticky places" are industrial districts with the ability to both attract and keep capital and labor, despite globalizing tendencies. Especially in advanced capitalist countries, corporations are faced with the problem of maintaining income-generating activities rather than outsourcing labor to developing countries. This analysis rejects the "new industrial district" (NID) traditionally offered as a solution - that is, the proposed "flexibly specialized" scenario of small, innovative firms in a successful system of industrial governance. Metropolitan growth since 1970 was studied for four countries - the United States, Japan, Korea, and Brazil -and include one case in each country that conformed to the NID, as well as three to five others that did not. Utilizing interviews and examination of documents, three alternative models emerged -- the hub-and-spoke district, the satellite industrial platform, and the state-centered district. These models reject the NID emphasis on small firms, instead demonstrating the power of the state and/or multinational corporations. As opposed to the NID internal emphasis, the proposed models are exogenously driven and allow increased networking across districts. Districts emerge as a result of multiple forces, including industry structures, cororate strategies and public policies. The study of industrial districts needs to move away from the NID model, encompassing a greater variety of firms, and analyzing more closely their links to the larger industry and global economy from which they emerge. (CJC)
Article
Compares the organization of regional economies, focusing on Silicon Valley's thriving regional network-based system and Route 128's declining independent firm-based system. The history of California's Silicon Valley and Massachusetts' Route 128 as centers of innovation in the electronics indistry is traced since the 1970s to show how their network organization contributed to their ability to adapt to international competition. Both regions faced crises in the 1980s, when the minicomputers produced in Route 128 were replaced by personal computers, and Japanese competitors took over Silicon Valley's market for semiconductor memory. However, while corporations in the Route 128 region operated by internalization, using policies of secrecy and company loyalty to guard innovation, Silicon Valley fully utilized horizontal communication and open labor markets in addition to policies of fierce competition among firms. As a result, and despite mounting competition, Silicon Valley generated triple the number of new jobs between 1975 and 1990, and the market value of its firms increased 25billionfrom1986to1990whileRoute128firmsincreasedonly25 billion from 1986 to 1990 while Route 128 firms increased only 1 billion for the same time period. From analysis of these regions, it is clear that innovation should be a collective process, most successful when institutional and social boundaries dividing firms are broken down. A thriving regional economy depends not just on the initiative of individual entrepreneurs, but on an embedded network of social, technical, and commercial relationships between firms and external organizations. With increasingly fragmented markets, regional interdependencies rely on consistently renewed formal and informal relationships, as well as public funding for education, research, and training. Local industrial systems built on regional networks tend to be more flexible and technologically dynamic than do hierarchical, independent firm-based systems in which innovation is isolated within the boundaries of corporations. (CJC)
Article
In this article we seek to move beyond existing conceptualizations of innovation systems in two key respects. First, we identify the need for a shift away from research that focuses on discrete scales as the locus for understanding innovation towards that which places more emphasis on network relationships operating between and across different scales. Second, we illustrate the need for approaches that recognize the significance of innovative networks that extend beyond firms and, in particular, those associated with the movement of knowledgeable individuals. By synthesizing recent insights from three literatures on ‘communities’ of varying kinds — namely communities of practice, knowledge communities and transnational communities — we propose a conceptualization of transnational innovation networks based around three overlapping and mutually constitutive domains. In addition to the much-studied ‘corporate-institutional’ domain, we also identify ‘social network’ and ‘hegemonic-discursive’ domains that may be important components of transnational innovation networks operating across different localities.
Book
Recent years have seen a lively debate over the role of tacit knowledge and interactive learning in privileging the local over the global. Yet, our continuing inability to answer questions such as 'when and why is the local important in production and innovation processes?' indicates that our understanding of the firm and the forces that shape its managers' choices remains weak. Such a theory ought to be able to answer fundamental questions like: why do firms in particular places adopt particular production and innovation practices, and not others? What forces determine what a firm 'knows' and when it is able to act upon this knowledge? How easy is it to transfer this knowledge between places? This book presents a new conception of industrial practice and firm behaviour. It explains how the cultures that shape the practices of firms and the trajectories of regional and national economies are actually produced. The analysis shows how the internal and inter-firm organization of production, use of technologies, and the industrial knowledge underpinning these practices are strongly influenced by their social and institutional context. Routine forms of behaviour are not simply inherited from past practice. Instead, they are shaped and constrained - though not wholly determined - by a set of institutions that govern how work is organized, workers are deployed, and technology is implemented. Because of the slowly evolving nature of these institutions, distinctive national 'models' are not converging around a single global norm.
Article
The patent is supposed to be a means to an end, that end being innovation. Whether the innovation comes from the protection the patent affords the inventor, or from the dissemination of the information of invention the patent allows, the patent is not meant to be an end in itself. This seems to be changing, the patent acquiring a strategic value increasingly independent of innovation. If this development has gone largely unnoticed, it may be because the patent system tends to be viewed from the entrenched perspectives of lawyers and economists, and of a number of interest groups that justify their reliance on the system in terms of the innovation it is supposed to encourage. These groups have never included small firms and developing countries in whose name they frequently defend the patent system. They may have some difficulty justifying a system whose strategic value is so divorced from its value for innovation.
Book
Japanese companies have become successful because of their skill and expertise at creating organizational knowledge. Organizational knowledge is not only the creation of new knowledge, but also disseminating it throughout the organization, and embodying it in products, services, and systems. Knowledge is the new competitive resource, and its creation and utilization is a dynamic, interactive process. Knowledge is used as the basic unit of analysis to explain firm behavior; a business creates and processes knowledge. Knowledge may be explicit or tacit; this study treats them as complements that form a dynamic relationship. The individual interacts with the organization through knowledge; knowledge creation occurs at the individual, group, and organizational levels. The forms of knowledge interaction (between tacit and explicit, and between individual and firm) produce four major processes of knowledge conversion: from tacit to explicit, explicit to explicit, explicit to tacit, and tacit to tacit. Japanese companies create new knowledge by converting tacit knowledge to explicit knowledge. The book has three goals: to formalize a generic model of organizational knowledge creation, explain why certain Japanese companies have been continuously successful in innovation, and develop a universal model of company management based on convergence of knowledge practices in Japan and the world. First presents a philosophical exposition of knowledge and its application to managemen, then the core concepts of knowledge creation, with four modes of knowledge conversion. The Matsushita company is used to illustrate the process model of organization knowledge creation. The two traditional styles of management (top-down and bottom-up) are shown not to be effective in fostering the dynamic necessary to create organizational knowledge, and a new organization structure considered most conducive to knowledge creation is proposed. (TNM)