How have state policies influenced the development of Japan's telecommunications, computer hardware, computer software, and semiconductor industries and their stagnation since the 1990s? Marie Anchordoguy's book examines how the performance of these industries and the economy as a whole are affected by the socially embedded nature of Japan's capitalist system, which she calls "communitarian capitalism." Reprogramming Japan shows how the institutions and policies that emerged during and after World War II to maintain communitarian norms, such as the lifetime employment system, seniority-based wages, enterprise unions, a centralized credit-based financial system, industrial groups, the main bank corporate governance system, and industrial policies, helped promote high tech industries. When conditions shifted in the 1980s and 1990s, these institutions and policies did not suit the new environment, in which technological change was rapid and unpredictable and foreign products could no longer be legally reverse-engineered. Despite economic stagnation, leaders were slow to change because of deep social commitments. Once the crisis became acute, the bureaucracy and corporate leaders started to contest and modify key institutions and practices. Rather than change at different times according to their specific economic interests, Japanese firms and the state have made similar slow, incremental changes.
This account of efforts to build a domestic Japanese computer industry is enlivened with quotations from industrial leaders commenting on the stages through which Japan has emerged as a world-class competitor. In the late 1950s, Japan was still relying on IBM and other foreign suppliers. After the decision to enter the computer field, the government used protectionism, financial aid, and cooperative R&D projects to assist firms in developing hardware and improving their technology. The establishment of a quasi-public computer rental company to carry the burden of financing rentals played a key role in helping fledgling firms compete with IBM. Marie Anchordoguy shows how government intervention in the market avoided the risks of technological sluggishness by encouraging keen competition among domestic computer firms. She traces the growth of Japanese computer hardware to Japan’s position as an exporter of mainframes and describes some of the problems encountered in producing software. This study provides a clear example of the way in which government–industry cooperation has enhanced Japan’s position in the world market.
How have state policies influenced the development of Japan's telecommunications, computer hardware, computer software, and semiconductor industries and their stagnation since the 1990s? Marie Anchordoguy's book examines how the performance of these industries and the economy as a whole are affected by the socially embedded nature of Japan's capitalist system, which she calls "communitarian capitalism." Reprogramming Japan shows how the institutions and policies that emerged during and after World War II to maintain communitarian norms, such as the lifetime employment system, seniority-based wages, enterprise unions, a centralized credit-based financial system, industrial groups, the main bank corporate governance system, and industrial policies, helped promote high tech industries. When conditions shifted in the 1980s and 1990s, these institutions and policies did not suit the new environment, in which technological change was rapid and unpredictable and foreign products could no longer be legally reverse-engineered. Despite economic stagnation, leaders were slow to change because of deep social commitments. Once the crisis became acute, the bureaucracy and corporate leaders started to contest and modify key institutions and practices. Rather than change at different times according to their specific economic interests, Japanese firms and the state have made similar slow, incremental changes.
Preliminary Material -- Market-Conforming Policies -- Changing Competition to Favor Domestic Firms, 1957-1969 -- Increasing Supply and Demand: The Japan Electronic Computer Company -- Strength Through Concentration, 1970-1975 -- Leapfrogging IBM? 1976 to the Present -- Cooperation and Competition for Competitive Advantage -- Notes -- Appendixes -- Bibliography -- Index -- Harvard East Asian Monographs.
This account of efforts to build a domestic Japanese computer industry is enlivened with quotations from industrial leaders commenting on the stages through which Japan has emerged as a world-class competitor. In the late 1950s, Japan was still relying on IBM and other foreign suppliers. After the decision to enter the computer field, the government used protectionism, financial aid, and cooperative R&D projects to assist firms in developing hardware and improving their technology. The establishment of a quasi-public computer rental company to carry the burden of financing rentals played a key role in helping fledgling firms compete with IBM. Marie Anchordoguy shows how government intervention in the market avoided the risks of technological sluggishness by encouraging keen competition among domestic computer firms. She traces the growth of Japanese computer hardware to Japan’s position as an exporter of mainframes and describes some of the problems encountered in producing software. This study provides a clear example of the way in which government–industry cooperation has enhanced Japan’s position in the world market.
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