The Speed and Cost of Industrial Innovation in Japan and the United States: External vs. Internal Technology

This study, based on detailed data obtained from carefully selected samples of about 200 Japanese and American firms, seems to be the first comprehensive empirical investigation of the differences between Japan and the United States in innovation cost and time. Whereas the Japanese have substantial advantages in this regard in some industries (notably machinery), they do not seem to have any substantial advantage in others (notably chemicals)....