0000000000457186
AUTHOR
Kuniko Moriya
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE: LESSONS FROM THE R&D MODELS IN AMAZON AND FINLAND
As a consequence of the two-faced nature of information and communication technology (ICT), a majority of ICT leaders have been confronting the critical problem of a dilemma between R&D expansion and productivity decline in the digital economy. However, Amazon has been able to accomplish a skyrocketing increase in R&D and market capitalization. Finland has also accomplished balanced advancement not only of welfare but also economic resurgence. This paper attempted to elucidate the miracle of two ICT leaders. By means of a comparative empirical analysis of respective development trajectories, the sources of their success were analyzed thereby the comparative advantage and disadvantag…
Consequences of the Digital Economy : Transformation of the Growth Concept
The digital economy is transforming the traditional concepts of economic growth.The recent reversal trend in GDP growth of ICT leaders can be attributed to effective utilization of soft innovation resources in Finland and adherence to traditional resources in Singapore.Confronting a productivity decline in the digital economy, global information and communication technology (ICT) leaders are transforming business models into those with uncaptured GDP creation. This can be attributed tothe harnessing soft innovation resourcesagainst a productivity decline. This in turn activates a self-propagating function and induces supra-functionality beyond economic value corresponding to a shift in peop…
The transformation of R&D into neo open innovation- a new concept in R&D endeavor triggered by amazon
Amazon was the world's top Research and Development (R&D) firm in 2017. Its R&D investment was double that of 2015, five times that of 2012, and ten times that of 2011. Such a rapid and notable increase in R&D investment has raised the question of a new R&D definition and focus in the digital economy, which Amazon insists includes both “routine or periodic alterations” (traditionally classified as non-R&D) and “significant improvement” (classified as R&D). Using an empirical analysis of Amazon's R&D model as a system, this paper attempts to provide a convincing answer to this question. It has been identified that Amazon, which is based on R&D as a culture, has been promoting companywide exp…
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE: LESSONS FROM THE R&D MODELS IN AMAZON AND FINLAND
As a consequence of the two-faced nature of information and communication technology (ICT), a majority of ICT leaders have been confronting the critical problem of a dilemma between R&D expansion and productivity decline in the digital economy. However, Amazon has been able to accomplish a skyrocketing increase in R&D and market capitalization. Finland has also accomplished balanced advancement not only of welfare but also economic resurgence. This paper attempted to elucidate the miracle of two ICT leaders. By means of a comparative empirical analysis of respective development trajectories, the sources of their success were analyzed thereby the comparative advantage and disadvantag…
Neo Open Innovation in the Digital Economy : Harnessing Soft Innovation Resources
Successive increases in R&D that creates new functionality are essential for global competitiveness. However, unexpectedly, as a consequence of the two-faced nature of information and communication technology (ICT), excessive R&D results in a marginal productivity decline leading to a decrease in digital value creation. In order to overcome such a dilemma, global ICT firms have been endeavoring to transform themselves into disruptive business model. Neo open innovation that harnesses soft innovation resources may be a solution to this critical question. On the basis of an empirical analysis focusing on forefront endeavors to this dilemma by global ICT firms, this paper attempted to demonstr…
Soft Innovation Resources: Enabler for reversal in GDP Growth in the Digital Economy
While Finland and Singapore have been maintaining world digital leaders position, they demonstrate interlaced contrast: high welfare with low GDP growth in Finland and higher GDP growth with lower welfare in Singapore. This provokes an uncaptured GDP postulate that Finnish wellbeing has developed more than one might conclude by GDP. However, a recent reversal in the GDP growth trend suggests the possibility that uncaptured GDP contributes to remove structural impediments in GDP growth.This paper demonstrates this hypothesis. An empirical analysis elucidating the inside the national accountings and institutional systems revealed that soft innovation resources have substituted for service cap…
Harnessing soft innovation resources leads to neo open innovation
Advancement of the digital economy has transformed the concept of the growth crossover in nations and firms, both concerning input and output. Advanced economies have been confronting a dilemma between input increases and output decreases. Contrary to traditional expectations, excessive increase in input has resulted in a productivity decline in output. A solution to this dilemma can only be expected by harnessing the vigor of soft innovation resources that lead to neo open innovation in the digital economy. This paper attempts to demonstrate this hypothetical view. Based on an empirical analysis of the development trajectories of 140 countries and 500 global ICT firms, dynamism, resulting …
A New Concept of R&D in NEO Open Innovation : Transformation of R&D Triggered By Amazon
Amazon was the world’s top R&D firm in 2017. Its R&D investment was double that of 2015, quintuple that of 2012, and tenfold that of 2011. It deploys a unique R&D model as conducting “routine or periodic alternations” and “significant improvement” simultaneously. Since traditionally the former is classified as non-R&D, Amazon’s rapid and notable increase has raised the question of a new R&D definition in the digital economy. By means of an empirical analysis of the Amazon’s R&D model, this paper attempted to provide a convincing answer to this question. Amazon has invested considerable resources in extremely innovative business areas, which has developed its assimilation capacity. In parall…