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Strategic capability development refers to the renewal of the organisational capabilities which are sources of competitive advantage. The aim of this paper is to examine how strategic capability and competitive advantage build up over time. Recent literature points to the integration of dynamic capability and ambidexterity perspectives in explaining organisational capability development. Literature analysis reveals the role of knowledge integration and product innovation in integrating dynamic capability and ambidexterity. However, little attention has yet been paid to knowledge integration within innovation projects as a context for capability development. Accordingly, this paper aims to develop a conceptual framework for strategic capability development focusing on the role of knowledge integration within product innovation projects. This framework contributes to identifying and emphasising the role of micro processes in capability renewal which in turn enhances our understanding of strategic capability development. [ABSTRACT FROM AUTHOR]

Japan has been a key player in the global competition based on scientific and technological innovation. Through a series of Science and Technology Basic Plans, the national government sought to restructure the country's approach to scientific and technological development, with initiatives ranging from a fundamental restructuring of public universities to major investments in regional clusters. Collaboration with business has likewise been a centerpiece of the Japan strategy, as has high level political leadership of the broad initiative. This paper examines the international and national context of Japanese innovation, outlines the core elements of the Japanese innovation strategy, and provides preliminary observations about the first decade of the country's extensive efforts to establish Japan as a global leader in the commercialization of science and technology. [ABSTRACT FROM AUTHOR]