Wednesday, January 4, 2017

Japan Earned 33.8B Dollars from Technology Exports in 2015

According to the Survey of Research and Development, Japan earned 3.9498 trillion yen (33.8B dollars in 117 yen / dollar) from technology exports in 2015, which includes patent licensing and supply of technical know-how. This is a increase of 7.9% from the previous year, four (4) consecutive years since 2012 and showed the highest figure.

It should be noted that 74.7% of the export is traded between a parent company and its subsidiaries. So, some observers criticize that this is not real royalty revenue, and that earning from non-affiliated companies is an issue in the future.    

This is probably due to the fact that many Japanese manufacturing companies have taken a strategy of "vertical integration", i.e. complete their business operations within their group companies, and have delayed in a transition to "horizontal specialization". Actually, this is often explained as the reason why Japanese manufacturing companies have been weakened in the globalizing world. So, when they go forward into "horizontal specialization", they will make more the royalty revenue from non-affiliated companies, and hopefully improve their international competitiveness.

Results of the Survey of Research and Development

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