Technology Exploration and Technology Exploitation in Japanese Chemical Companies

This study analyses Japanese chemical companies’ performance based on open innovation activities. 19 listed chemical companies from Tokyo Stock Exchange were selected for the study. Secondary data from chemical companies' patents information and company transactions are collected through the private patent database, Derwent Innovation - Clarivate and private financial database, Thomson Reuters - Eikon. The findings indicate that open innovation practices did not improve Japanese chemical companies’ performance (return on net operating assets). Overall, neither technology exploration nor technology exploitation competencies are contributing to company performance, but one significant finding is found where divestitures of subsidiaries and joint ventures are improving company performance. In conclusion, some suggestions have been made for Japanese chemical companies to practice open innovation activities more efficiently.