Tacit Knowledge-based Network & Creation of New Value-No.1


This paper challenges to describe a novel scheme of acceleration of global innovation, through the unique tacit knowledge-based value chain, at both seeds and needs sides of technology innovation. The author empirically describes how such “tacit knowledge” effectively transfers through “small network” and challenges to categorize the type of such small network, as well as analyzing the transfer processes among these categorized networks. This paper clarifies how the proposed new structure helps technology seeds holders in finding the best partners, as well as technology needs holders – corporate companies – to accelerate the realization of innovation, through tacit knowledge value chain. The author believes that this challenge is truly a frontier effort in global innovation.

Necessity of Acceleration of Global Innovation

Global industrial companies are experiencing unprecedented huge global economic recession caused by the sub-prime financial crisis started in the USA in September 2008.

Despite very difficult financial situation, there are still many leading companies that do not decrease R&D investment, and continue to make their effort for innovation, and stockpile technology seeds as asset for the future growth. However, they know that they need more technology seeds for the jump and growth as global companies, because they know that there are so many difficult global issues to be solved. They know that these issues can be solved by the cooperation of global experts, not solely by internal experts. This means they crucially need technology seeds from outside for “open innovation”.

There are also many companies that are compelled to squeeze R&D in order to minimize cost and achieve better balance sheet figure, because they desperately need to survive now anyhow. Truly, there is no future if they cannot survive now. However, when they recover from long time depression, they will recognize that they do not have enough internal technology seeds for their future growth. Thus, they crucially need any promising innovation seeds outside and globally.

Today, technological innovation seeds – new knowledge – are more often born at many global arenas, especially are created by global ventures. So, today and more in the future, these high-tech industries crucially need to get the most promising innovation seeds from global ventures, in order to enhance their competitiveness.

In order to achieve successful alliances between global ventures and corporate companies, it is very important and effective to realize direct face-to-face meetings between the top of needs and top of seeds – effective shortcut path between ventures and corporate companies. Thus, some novel scheme, to connect global ventures and global corporate companies is crucially demanded. (Fig.1 ).


The author started in 2003 a new novel scheme “GVIN = Global Ventures Industries Network” with the objective of providing “Ba” – a Japanese word meaning opportunity or place – of direct interactions between the top persons of both global ventures and global corporate companies, so that new innovation seeds are directly exposed to top management and/or persons in governance of corporate companies.

Direct interactions are achieved primarily by means of “face-to-face meetings” of top persons between two parties, or sometimes forums – presentations by ventures to senior influential people in industries. They are followed by all kinds of business processes leading to strategic alliances. The emphasis is “face-to-face” meeting between top persons of seeds and needs holders.


Through the experience of actual GVIN operation, the author confirmed the importance of tacit knowledge network as the most important value chain for global innovation. Especially, in the case of GVIN, tacit knowledge network through FMT (Forum Management for Tomorrow, Ins) has important role. Figure 2 shows this.

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