OBSTACLES TO PRODUCT INNOVATION

For Japanese firms, the greatest barriers to product innovation are poorly communicated objectives for new products and insufficient attention to product specifications to meet customer requirements, according to a survey by Arthur D. Little, a consulting firm.

The survey - of 701 firms from Japan, Europe, and the United States - also found that lack of skilled leaders is the No. 1 reason hindering product innovation for both European and US firms. Japanese managers, according to the survey, devote more effort to product innovation than their American or European counterparts.