Periodic recession and R&D management in Japan

This paper demonstrates the changes of R&D management in Japan from the viewpoint of business cycles. The analysis of the sales of three electric manufacturing companies (Hitachi, Toshiba and Mitsubishi) for the past 38 years shows that there exists a 10 year business cycle. Through the help of the periodic depression, R&D laboratories were restructured and some of the research employees were moved to business divisions. R&D targets and management systems were refreshed at intervals of 10 years. From the experience, it is reasonably predicted that Japanese R&D sectors will suffer from a severe depression around 2005. This coming depression will offer another opportunity to refresh R&D activities