Since the 1990s, Japanese firms have sought to expand their capacity for innovation by incorporating Western management practices into their organizational culture. This combination of Japanese and Western management practices has been highly successful — Japanese firms are presently at the forefront of technological and service innovation in areas such as digital consumer electronics, mobile phone services, and the games industry. Much can be learned from the success of Japanese companies in these areas.This book presents an analysis of the business model unique to Japanese firms, emphasising four special features: the vertical value chain model, cross-industry collaboration, dynamic knowledge integration, and strategic innovation capability. Drawing upon in-depth case studies, this book presents a new theory of knowledge integration, and places special emphasis on inter- and intra-organizational collaboration as a source of strategic innovation. It is a good reference source for academics, graduate students and professionals in the field of innovation management.