Japan's national innovation system: current status and problems

This paper examines Japan's national innovation system that was so successful in the 1980s and seems to have lost its competitiveness in the 1990s. In recent years, the competitiveness of industry relies not only on industry itself but more and more on the national innovation system as a whole. The first section of the paper points out that Japan's potential economic growth rate is likely to decline in the twenty-first century, primarily because of the rapidly ageing population, and, therefore, it is important to increase productivity through technological progress. Then, in the following sections, each sector of Japan's national innovation system, namely industry, universities, and government, is examined and directions of reform are suggested. Copyright 2000 by Oxford University Press.

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