--- description: Breaking news and analysis from time.com. Politics, world news, photos, video, tech reviews, health, science, and entertainment news. title: Innovation Fueled by Quality image: https://static.time.com/v3/assets/bltea6093859af6183b/blt270283a9d7369464/6a552fd0aad46541aaf29984/Euglena.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9%2Coffset-x0.00%2Coffset-y0.00 --- # Innovation Fueled by Quality  Japan’s economy has always been built on the pillars of quality and innovation. Even when facing its greatest challenges and competition, the tradition of maintaining standards above all else has never wavered. Inspired by the business philosophies of kaizen, meaning to always improve, and monozukuri, to champion quality, Japanese companies in different industries have prioritized R&D to drive growth, expand markets and fend off lower-cost rivals from neighboring nations. According to recent Japanese government statistics, the nationwide expenditure on R&D is now at its highest recorded figure. For the 2023 fiscal year, the total spent was an incredible 22.05 trillion yen, an annual increase of 6.5%. In the competitive and fast-moving chemicals industry, innovation is crucial, and Toshiyuki Yagura, president of Sakai Chemical Industry Co., Ltd., explained that customer feedback is essential to this. “We have expanded our research and development headquarters and established the R&D Promotion Department. Instead of pursuing a product-out approach, we focus on market-in strategies, developing products based on customer demand,” said Yagura. “Japanese chemical companies prioritize close interactions with customers, fine-tuning their products with precision from a technical standpoint,” he added. Kami Electronic Industry Co., Ltd. also employs a client-centric R&D policy. “We need to have enough demand from the client side in order to keep up momentum,” said President Noriaki Hayasaka. “That is why we aim to ensure in-person communication with clients and potential clients so that we can identify what they really need and translate that into our R&D capabilities,” he added. While innovation can be often associated with major Japanese technology-based industries such as electronics and automotive, scientific breakthroughs are also vital for farming and food manufacturing firms such as Euglena Co., Ltd. “One of the competitive advantages of Japanese industry is our agriculture field. Some fruits, such as apples, grapes and strawberries, are the best of their kind in the world, achieved through precise breeding and technical know-how,” said Co-CEO and CFiO Tomohiro Wakahara. “With limited land resources, we have been able to maximize output to the fullest extent,” he added.  As a small island nation with a declining population, exports are crucial for ambitious Japanese businesses. Developing new products and systems, often in conjunction with overseas clients, forms a central part of such global operations. Japanese companies working with international partners can benefit from investing in innovation, according to Kenji Morita, president of Fujikura Composites Inc. “We maintain our R&D in California due to the proximity of key golf equipment clients like Titleist, Callaway and TaylorMade,” said Morita. “Looking ahead, we are prioritizing support for the aging population through medical advancements. We are also focusing on the automotive industry with innovations like EV heat guards to prevent fires,” he added. Masaki Koso, president of Koyo High Precision Co., Ltd., believes that Japan’s track record for high standards can help drive further overseas success. “The main strengths of Japanese companies are the ability to ensure quality, reliability and craftsmanship. Really, now is the best time for Japan to become an outstanding force on the global stage again,” said Koso. Tomu Sugimura, president of manufacturing firm Nacol Co., Ltd., believes that its innovative new hydraulics systems can have a massive impact for customers and clients. “Our ‘Aquadrive’ system means we can move from heavy industry to light industry, using waterpower and hydraulics to solve challenges in food production and medical devices. We can explore these new markets, providing an alternative to conventional hydraulic drive systems,” said Sugimura. “Generally, our production model focuses on increasing efficiency with limited human resources. We have changed to a low-mix, high-volume model to accomplish this and ensure customer satisfaction, alongside digitalizing general operations,” he added.  At Takako Industries Inc., innovation and new ideas have been a core tenet of corporate philosophy from day one. President Keisuke Saito described the firm’s ideals as a constant drive for technological innovation. “The history of Takako is the struggle to convert manual labor into automation and the various ways to achieve it. We have been able to build up our production system to facilitate a more expedited manner,” said Saito. “Now, we are talking about Society 5.0 or AI, but the truth is our company was working on those initiatives before they even became buzzwords,” he added.  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