R&D management for diversification of business

The diversification of business at Sumitomo Electric Industries, Ltd. is discussed, and some examples of R&D management which have been designed from the viewpoint of involving all the people of the company through effective knowledge transfer are presented. This management has involved every level from executives to research assistants and whole groups of people, including not only the R&D group but also the corporate staff. Three unique systems are introduced, and these are harmonized into a corporate R&D culture. Consideration is given to the Reactive Integration Committee, which is at the strategy level of the concept; the categorization of R&D projects, which is at the management control level; and K-K activity, which is at the operation control level.<>