Journal of Industry, Competition and Trade

, Volume 7, Issue 3–4, pp 229–243 | Cite as

Industrial Policy in Japan

  • Risaburo Nezu


Japanese industrial policy had been well known to be about specific sectors and technologies. About 1990 economic growth stopped after decades of a remarkable process of catching up with the US. The potential to borrow technologies and ideas from other countries has become exhausted and Japan had to develop own technologies. The article descibes structural reforms in competition policy, corporate governance, management of intellectual property and mobility of researchers. Industrial policy has now more to do with horizontal policies and framework conditions than with targeting. Even if the “new economic growth strategy” – drawn up by the economics ministry [Ministry of Economy, Trade and Industry (METI)] and improved by government in 2006 – defines industrial areas with strong growth potential, these areas are obvious and there are no instruments available to promote them specifically. METI has become a proponent of government wide deregulation and will play as a leader of reforms.

JEL Classification

L16 L52 O33 O43 


industrial policy deregulation competition policy new economic growth theory 

Further Reading

  1. Berger, S. and Lester, R., Made in Hong Kong. Oxford University Press: London, 1997.Google Scholar
  2. Cabinet Office, White Paper on the Japanese Economy and Finance. Cabinet Office, Government of Japan: Tokyo, 2005.Google Scholar
  3. Chesbrough, H., Open Innovation. HBS Press: Cambridge, 2002.Google Scholar
  4. Christensen, C., Innovators’ Dilemma. HBS Press: Cambridge, 2001.Google Scholar
  5. Clerk, K. and Fujimoto, T., Product Development Performance. HBS Press: Cambridge, 1991.Google Scholar
  6. Goto, A. and Kodama, T., Japan’s Innovation System: Rebuilding the Engine of Growth. University of Tokyo Press: Tokyo, 2006.Google Scholar
  7. Johnson, Ch., MITI and the Japanese miracle. Stanford University Press: Stanford, 1982.Google Scholar
  8. Lester, R.K., The Productive Edge. Norton: New York, 1998.Google Scholar
  9. METI, White Paper on International Trade. METI: Tokyo, 2004.Google Scholar
  10. METI, White Paper on International Trade. METI: Tokyo, 2005A.Google Scholar
  11. METI, White Paper on SMEs in Japan. METI: Tokyo, 2005BGoogle Scholar
  12. METI, Monodukuri Hakusho. White Paper on Manufacturing Industry. METI: Tokyo, 2005C.Google Scholar
  13. METI, Shin keizai seichou senryaku, New Economic Growth Strategy. METI: Tokyo, 2006Google Scholar
  14. Ministry of Internal Affairs and Communication, White Paper on Japanese Information and Telecommunication. Ministry of Internal Affairs and Communication: Tokyo, 2005.Google Scholar
  15. Motohashi, K. and Shinpousha, T.K., Empirical Analysis of IT Innovation: Has IT Changed Long Term Japanese Economic Performance? RIETI: Tokyo, 2005.Google Scholar
  16. Nezu, R., Knowledge Economy in Japan. World Bank: Washington, DC, 2006.Google Scholar
  17. OECD, Information Technology Outlook 2002. OECD: Paris, 2004.Google Scholar
  18. OECD, Science, Technology and Industry Outlook. OECD: Paris, 2002–2005.Google Scholar
  19. Porter, M., Can Japan Compete? Basic Books: New York, 1991.Google Scholar
  20. Thurow, L., Head to Head. Warner Books: Clayton, 1992.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.Fujitsu Research InstituteTokyoJapan

Personalised recommendations