Trading Company Relationships as an Integrated Network for Innovation: Evidence from Two ‘Ordinary’ Industries of Textiles and Steel

There is a large literature on innovation and the importance of a node and a network as
important to creating an environment for such innovation. Most of the analysis of this
system has been in high technology industries, and in the products and technologies that
it creates. However, there is no reason why we can’t analyze innovation in less leading
edge industries and products, and in the development or organizational structures rather
than products. This paper tries to illustrate the potential of this type of innovation
institutions by looking at structures for business relationships as the innovation, and
consciously chooses two very low technology industries (Japanese trading company
relationships in textiles and steel) to illustrate the potential usefulness of innovation
system concepts in less conventional venues.