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In this paper, we attempt to clarify and explain the mission of Japanese corporate research institutes in the 21st century. Our discussions focus on the important problem of "experience economy" in the development of new business models, information technology (IT) all companies should have, and the problem of knowledge creation location. We also describe some of the measures introduced by Mitsubishi Electric Corporation (MELCO) to create the practical knowledge necessary for the company's continued existence in the IT era.

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