Knowledge flows in innovation networks: a comparative analysis of Japanese and US high‐technology firms

The Japanese firm and the “traditional” US firm have different inter‐firm knowledge systems; in particular, Japanese firms tend to exchange information more frequently with their main suppliers, customers and other kinds of organizations (i.e. non‐profit organizations). As a result, they tend to develop new products and processes faster than the “traditional” US firm. Shows that non‐Japanese high‐technology firms that adopt Japanese‐style networks tend also to develop new products and processes faster than their competitors.