MOBILE INNOVATION RESEARCH PROGRAM

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1 HITOTSUBASHI UNIVERSITY INSTITUTE OF INNOVATION RESEARCH MOBILE INNOVATION RESEARCH PROGRAM (*formerly Research Program of the Mobile Communication Industry) PROGRAM OUTLINE December, 2001 (Rev.3.1) Institute of Innovation Research Hitotsubashi University 2-1 Naka, Kunitachi, Tokyo , JAPAN

2 TABLE OF CONTENTS 1. BACKGROUND AND OBJECTIVES 2. OUTLINE OF RESEARCH 3. RESEARCH ORGANIZATION AND TIMETABLE 4. SPONSORSHIP For further information and questions about this program, please contact: Program Director: Prof. Seiichiro Yonekura* Program Coordinator: Prof. Akira Takeishi** Administrative Coordinator: Asami Onuki*** Institute of Innovation Research, Hitotsubashi University 2-1 Naka, Kunitachi, Tokyo , JAPAN Phone: *+81-(0) , **+81-(0) , ***+81-(0) Fax: +81-(0)

3 1. BACKGROUND AND OBJECTIVES This research program has two objectives. One is to provide knowledge and perspectives useful for practitioners and policymakers by conducting empirical research on the mobile communication market, industry, and business. The other is to build a new infrastructure for management research in Japan. Studying the Mobile Innovation As we enter the 21st century, our economic system is undergoing some radical changes, including the creation of new products, services, and business driven by rapidly advancing information and communication technologies. Innovations in the field of mobile communication have emerged as a pivotal point of such changes. The use and applications of mobile communication have been spreading rapidly. The number of mobile telephone subscribers throughout the world totaled 300 million at the end of 1998, 450 million at the end of 1999, and is projected to reach one billion in It is also projected that mobile phones will surpass personal computers in number as tools to access the Internet by The concept of mobile phones has gone beyond mere wireless telephones as originally intended. Mobile phones are now expected to play a central role of new economy/business systems leveraging the progress in information technologies. Expectations for the mobile innovation, as a powerful driver for the reinvigoration of the economy, are running high particularly in Japan. It has fallen behind the United States in most areas of the IT revolution, but has commanded a leading position in the field of mobile communication. What are the characteristics of the mobile communication market, industry, and business? What innovations are being made in this field? Who are the main players and how do they compete with each other? What type of management is being sought after? Where are the mobile communication market and industry headed? What positions do major players of Japan and other countries hold in the market? What type of business strategies do they have? Exploring these topics, this program intends to create new management knowledge and offer useful perspectives and analyses to practitioners and policymakers. Building a New Research Infrastructure This program, in collaboration with industry, also aims at establishing a new research infrastructure in Japan. 2

4 In Japan, university researchers in the field of management have collaborated with and contributed to practitioners and policymakers. Receiving funding from corporations, foundations, and public sectors, management researchers have sometimes conducted research projects with industries and government agencies. However, such collaborative research projects have been conducted rather individually and researchers have been limited to only Japanese in most cases. Focusing on mobile communication, this research program intends to establish a long-term research infrastructure that is open to researchers from Japan as well as the rest of the world a new research infrastructure that has never existed in Japanese universities. Such open research programs have already yielded remarkable results in the United States. Notable examples include the International Motor Vehicle Program (IMVP) at the Massachusetts Institute of Technology (MIT), and the US-Japan Industry and Technology Management Training Program (JIMT) sponsored by the U.S. government. These programs, funded by private corporations, foundations, and the government, have involved many researchers invited from other countries including Japan, and have made comprehensive, comparative studies of the automobile industry worldwide (IMVP) and the Japanese manufacturing industries (JIMT) for a long period of time. The former program has helped the American automobile industry recover from a slump, and the latter has promoted mutual understanding between the United States and Japan. Both have also contributed to the training of a great number of researchers, both American and foreign. As the Japanese economy and industry require structural changes, there exists a growing need for a new research infrastructure in the field of management that could yield practical results and foster good researchers. This program is an attempt to build such an infrastructure in Japan. 2. OUTLINE OF RESEARCH Research Topics This program will perform empirical studies of the mobile communication market, industry, and business from a managerial point of view. The participating researchers will set the topics of individual studies. In the beginning, an emphasis will be put on the individual studies of participating researchers and interactions between them. In the medium-term, however, we plan to conduct international research projects jointly by participating researchers. 3

5 Examples of shared interests and future joint research projects are as follows: New Applications, Markets, and Business Models: Driven by rapid technological progress, new applications, markets and business models have been emerging. They encompass various sectors and areas, such as service, finance, education, manufacturing, medical, and entertainment. Their future possibilities, international comparisons, and challenges for participating firms and policy makers will be analyzed in this program. Competition between Different Interfaces for Internet Access: As the advent of the third generation mobile telephones is approaching, the focus of the competition in the mobile communication industry is shifting to the battle between different interfaces for Internet access. Mobile phones and PDA's are beginning to challenge desktop PCs, which have been dominant in this field. What are the characteristics of the competition between these interfaces? What technological innovations are being made there? How are the standards of each interface being established? What competitive advantage and business strategies do major players in the industry have? The project will explore and analyze these issues. Inter-firm Division of Labor and Competition in the Mobile Communication Industry: Many different parties are involved in mobile communication business including communication service carriers, network system providers, handset manufacturers, semiconductor manufacturers, parts manufacturers, and Internet service providers. The pattern of the division of labor between various parties and their relations differ with countries or companies. This project will compare the inter-firm systems in different countries, and analyze how they affect competition and technological innovation. Global Strategies and Organizations in the Mobile Communication Industry: The scope of the mobile communication business has been rapidly crossing over the existing boundaries of industries and nations. Major companies have built various types of alliances at the global level to form partnerships to win technological and standard-setting races, while trying to strengthen their own global organization to deal with diversified market needs and competitive pressure around the world. This project will analyze major companies global strategies, organizational characteristics, and strategic alliances in the industry, and how these factors affect competition between them. Other prospective topics of individual studies include: 4

6 Patterns of innovation and their competitive impacts in the mobile communication devices Case studies of particular companies in Japan and other countries Environmental issues and challenges in the mobile communication industry Researchers We will invite researchers from universities and research institutes inside and outside Japan to join the program. The participation of overseas researchers is indispensable to study the global mobile communication market, industry, and business. We aim at building an international research program so that we can deepen our understanding of mobile communication with an international perspective. In addition to experienced researchers, graduate students will also participate in the program as important members. One of the program's important missions is to support future researchers. Japan's management research environment has fallen behind the United States in supporting graduate students in their research activities. The establishment of an attractive research infrastructure for would-be researchers is also a key to drawing excellent students from abroad. Some universities in Europe and the United States have recently launched research projects to study the mobile communication market, industry and business, sharing similar objectives with this program. Among them are Stockholm School of Economics (Sweden), Helsinki Institute of Technology (Finland), INSEAD (France), University of Texas, and Massachusetts Institute of Technology (USA). Collaborating with those and other institutions overseas, this program will co-organize a series of international roundtables (tentatively named Mobile Innovation Roundtable) to establish and support international research networks and cooperation (see below). The following universities and research institutes have indicated interest in joining the program: Hitotsubashi University, Graduate School of Commerce and Management (Japan) Kobe University, Research Institute for Economics and Business Administration (Japan) Shinshu University, Department of Economics (Japan) Yokohama National University, Graduate School of Environment and Information Sciences (Japan) Keio University, Faculty of Economics (Japan) University of Texas (USA) 5

7 Massachusetts Institute of Technology, Sloan School of Management (USA) Helsinki School of Economics and Business Administration, Center for Knowledge and Innovation Research (Finland) Helsinki School of Economics and Business Administration, Institute of Electronic Commerce (Finland) Stockholm School of Economics, Center for Communication and Information Research (Sweden) The National University of Singapore, Faculty of Business Administration (Singapore) Sookmyung Women s University, Division of Business Administration (Korea) Kyungpook National University, School of Business Administration (Korea) Electronics and Telecommunication Research Institute (Korea) National Cheng Chi University (Taiwan) Research Activities and Outputs Individual researchers, while pursuing their studies, will have regular interaction with each other at monthly meetings (only in Japan) to share and discuss their research. There will be annual international meetings (see below) in which researchers from Japan and abroad meet together to present and discuss their research results. Hitotsubashi University's Institute of Innovation Research will publish the results of the program's studies as a series of working papers, which will be available to the public. The results of some studies by graduate students may be applied to master's theses or doctoral dissertations. The results of individual studies may also be published as academic papers or books. 3. RESEARCH ORGANIZATION AND TIMETABLE Research Organization Hitotsubashi University's Institute of Innovation Research will be in charge of planning, coordination, administration, and operation of the entire program. Participating researchers will join the program as individuals, and financial support for individual studies will be provided via the Institution of Innovation Research. Professor Yonekura serves as the Program Director, Professor Takeishi as the Program Coordinator, and Ms Asami Onuki as the Administrative Coordinator. 6

8 Timetable Phase One of the program will continue for three years. Starting from April, 2001, the first year will be the launching period during which researchers inside and outside Japan will be invited to join the program, research topics will be narrowed down, and individual studies will start. In the second year, individual studies and interactions between participating researchers will be accelerated, and joint projects will also begin. The results of Phase One will be summed up at the end of the third year. When it is confirmed that the program has yielded certain valuable results and has proved worth continuing at the end of the third year, it will move on to Phase Two. International Roundtable Mobile Innovation Roundtable (tentative) is a series of international research workshops where researchers around the world interact, discuss and collaborate for the study of mobile communication market, industry, and business. The roundtable intends (1) to build and support sustainable research networks for studying the mobile communication market, industry, and business which have become increasingly global and yet still maintained local diversities due to historical and institutional conditions, and (2) to facilitate mutual communication and interactions among researchers, practitioners and policymakers around the world. The roundtable will be co-organized by a number of institutions, including this program, University of Texas, Stockholm School of Economics, Helsinki School of Economics and Business Administration, and Hong Kong University of Science and Technology. Tentatively, it is planned to have: Preparation meeting September 2001 Stockholm (Sweden) First Roundtable May 2002 Tokyo (Japan) Second Roundtable 2003 Stockholm (Sweden) Third Roundtable 2004 Austin (USA) Researcher who have been involved in planning the roundtables include: Sirkka Jarvenpaa 7

9 Center for Business, Technology, and Law University of Texas at Austin (visiting researcher at MIT Center for Information Systems Research) Timo Saarinen Institute of Electronics Commerce Helsinki School of Economics and Business Administration Virpi Tuunainen Institute of Electronics Commerce Helsinki School of Economics and Business Administration Bertil Thorngren Center for Communication and Information Research Stockholm School of Economics Per Andersson Center for Communication and Information Research Stockholm School of Economics Karl Reiner Lang HongKong University of Science and Technology Seiichiro Yonekura Institute of Innovation Research Hitotsubashi University Akira Takeishi Institute of Innovation Research Hitotsubashi University Jeffrey Funk Research Institute for Economics and Business Administration Kobe University 8

10 4. SPONSORSHIP Sponsoring Companies This research program will operate on financial support from private corporations as its sponsors. Sponsoring companies will be those involved in the mobile communication business. Currently, our sponsors are DDI, Fujitsu, J-Phone Central, NEC, and NTT DoCoMo, whose generous support is gratefully acknowledged. Sponsoring companies will give researchers suggestions on research topics, and feedback on research results. Their advice will help researchers determine, revise, and further develop their research topics and how they conduct the studies. Sponsoring companies will be invited to monthly and annual meetings. Furthermore, researchers and sponsoring corporations will be encouraged to interact with each other and exchange views whenever necessary and possible. An annual report on the progress and results of the studies will be submitted to the sponsors at the end of each year. Financial Support Each sponsoring company will be asked to contribute research funding of 2,500,000 every year. It is anticipated that they will offer the same amount of money each year during Phase One. This amount, however, may change according to the number of sponsoring companies and the progress of the research projects. Financial support for this program can be treated as tax deductible expenses (research commission expenses) in Japan. Budget Research funding from sponsoring companies will be spent on the following: Financial support for individual studies (to cover transportation expenses, travel expenses, research material expenses, communication expenses, translation expenses, etc.) Program administration (to cover transportation expenses, travel expenses, research material expenses, communication expenses, personnel expenses for support staff, translation expenses, etc. ) Meetings and roundtables (to cover transportation expenses for participants, travel expenses, meeting expenses, research material expenses, etc.) 9

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