The Effect of SMEs´ Partnership for Innovation: Case Study of the Japanese Manufacturing Industry

Firms compensate for their lack of internal resources with various partnerships. Therefore the identification of effective partnerships is important. This paper analyses the effects of financial cooperation and the sharing of knowledge of the successful innovation of Japanese manufacturing. The study examines the role of partnerships in the successful innovation of firms. The results of the study suggest that, in partnerships with government, both financial partnership and sharing of knowledge have had a positive effect, but, in partnership with clients, exclusively sharing of knowledge but not financial cooperation has had a positive effect.