Do competitive strategies drive R&D? An empirical investigation of Japanese high-technology corporations

This paper is an empirical study of the effects of competition strategy on research and development (R&D). Analysis of survey data from Japanese high-technology firms in consumer electronics, communications, precise machinery, and pharmaceuticals showed that the competitive strategies directed toward higher added-value and product differentiation exerted more impact on R&D than that aimed at cost leadership, and that strategies with broad market ambits were more important. We also found R&D to be fairly well integrated with strategic management. In sum, to enhance competitive advantage, Japanese high-technology companies tend to exploit R&D to create differentiated products with high added-value to supply a broad range of markets.