A Note on Comparative Advantage of Architectures (Japanese)

Takahiro Fujimoto

Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: In the so-called "architecture theory," an anticipated proposition is that many Japanese companies, which have built up organizational ability in "integration-based manufacturing" during the postwar period, excel at manufacturing products featuring "integral architecture," and therefore such products account for a substantial portion of Japan's net exports. This paper examines the logic of the design process that lies behind this proposition. Specifically, by translating the problem of design into a simplified process of "solving simultaneous equations," thought experiments are conducted to analyze why Japanese companies are highly likely to develop greater (Ricardian) comparative advantage in the "cost of design" with respect to integral products under the supposition that Japanese companies are generally more efficient than their foreign counterparts in finding solutions through trial and error. The paper also points to the possibility that Japanese companies may not have comparative advantage with respect to products featuring highly complicated integral architecture, for which not only trial-and-error processes but also systematic knowledge are required.

Pages: 24 pages
Date: 2005-03
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/05j013.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:05013

Access Statistics for this paper

More papers in Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().