"In this paper, we, in order to elucidate the essence of the strengths of Japanese manufacturing company, focus on traditional and cultural elements that lurk in the back of business administration and engineering point of view. So, focusing on the relationship between tradition and culture in manufacturing and “Karakuri” in Japan, we firstly review past researches on “Karakuri” and present a new viewpoint. As a framework for analysis, we secondly show our flamework, “Kara (=noun) × Kuri (=noun of the verb).” Then we did a discussion about a new definition and etymology. Lastly, we indicate the “active mechanism of Karakuri” and reveal that there is a “Shikumi ? Shikake” which enables the unique dynamic evolution and learning “Karakuri”. Through this process, innovation will be realized."