ABSTRACT
Technology is both a driver and a product of the process of globalization. Clearly, when firms such as Procter & Gamble, Phillips, and IBM establish operations in more countries, performing functions such as marketing, production, and even R&D in their foreign locations, they leverage their own capabilities while enhancing those of the host nation.1 Governments have, over the years, been cognizant of the importance of technology development to sustained economic growth. Most states have acted, through intervention, policy changes, or direct funding, to raise the country’s technological profile. Japan, for instance, helped its firms undertake licensing of foreign technology, and later encouraged collaborative corporate efforts, often offering tips on products most likely to succeed.2
Later, the Japanese made a mark for themselves either through product innovation – Sony, Canon, and Honda for example – or, to a greater extent, through process improvements resulting in higher productivity and better quality. Toyota, Matsushita, Suntory, and Tokyo Steel exemplify the latter group.3
