Characterizing R&D and HRD in the innovation process of Japanese SMEs: analysis based on field study

To analyse the nature of R&D and HRD among Japanese SMEs, theJapan Team selected the following three firms from themanufacturing industry, depending upon size in terms of thenumber of employees, types of products, orientation towardinnovation and so on. The three firms selected were Dynic, KyokkoElectrics (Kyokko for short) and Maeda Precision Manufacturing(Maeda for short). In the context of formal or informal R&D, Dynicand Kyokko own R&D centres, while Maeda does not, which is dueto the size of firms. This study analyses their R&D and HRDorganizational structures and implementations and identifies factorswhich determine the nature of their R&D and HRD. The factorspromoting innovation extracted based on the in-depth interviewsare (1) the size of firm, (2) types of product and production, (3)seeds of innovation, (4) attitude toward risk and (5) learningprocess. The common factor acting as the basis for the firms’ R&Dstructure was identified as ISO9001 which three firms commonlyintroduced and applied. Their HRD are also different, which are dueto (1) level of new employees and (2) the size of firm. The policyimplications for further promotion of innovation are also discussed.