This paper consists of four chapters that deal with technological innovations and business cyles, transitions in the technological paradigm, paradigm shifts and co-operation strategies in the chemical engineering industry, and the international competitive power and other characteristics of Japanese companies. Current trends of technological innovation and the present techno-economic paradigm are described, and advice is given on which strategies to adopt depending on the changes in the technological phases. The that technological innovation is the driving force of economic growth, and that technological progress and the process of market formation are subject to lifecycles, condition the strategic reactions of companies. These reactions will further depend on the technological phases the companies are in. Indicators to extend business to new fields are drawn from case studies and problems concerning basic research are discussed.