Part 1 Using Knowledge to Create Society and Economy for a New Era
Chapter 2 In the Era of Mega-Competition for Knowledge
Section 2 Innovations and Japan's Economy
2. Japan's Innovations that Led the World
(1) The Driving Force Behind Japan's Past Economic Growth
Japan has achieved high economic growth through progressive
technical innovations, centering on process innovations. On the other hand, with
regard to products and services which have a great impact on society and the
economy (e.g. computers, software and communication devices), the majority that
lead the world market originate from the West.
(2) The Limits of Conventional Innovations
In recent years, Asian countries have improved quality and productivity
by introducing foreign capital and technology and with their low labor costs,
have increased exports of industrial products as the base for world production,
and are having a major impact on the world economy. Against this backdrop of
globalization of industry, Japanese-style innovations no longer hold water. As
a consequence, many companies, instead of improving and modifying transition
products, are adopting corporate strategies which place value on how to create
needs in customers, and create new markets.
