Technology Problem in Japan

Japanese Economy has been struggling against oddsforthepastfew
decades.The reason stated by researchers seems to be,primarily,certain
structural flaws in the economy. For example, thebankingsector,instead
of dealing withbadloans’inaneffectivemanner,offeredloansto
bankrupt companies to stay in business instead of encouraging newcompanies
with credit loans. In addition to this problem, deflation, which startedin
Japan in 1996 under the Hashimoto administration, is also a major causefor
concern. Theliquidity trap’ that Japan is forced to deal with whereinthe
Japanese indulge in excess savings, is proving to be ahurdletoadvanced
technological developments. The solutions offered byexpertsarethatof
reforms in banking methods, fiscalreforms,andacontrolledinflation.
Competent administrators should be able to handle thesereforms,aidedby
thegovernmentwithcertainliberalpolicies.(TheCurrent Japanese
The Japanese attitude towards Technology is that of stiff competition,
especiallyinthatofnew technological innovations. Science and
technology, being inter related, seem to be growingatthesameratein
Japan, and this is demonstrated by the fact that therehasbeenasubtle
shift in power management in industries. For example, intheManufacturing
division of any industry, there hasbeenashiftofpowerfromsimple
production to the real creation of knowledge. Therefore theshiftisfrom
merequantitativeproductiontoamoreinnovativethinkingand the
competitionbecomesbasedoninnovationsintheindustry. (Emerging
Patterns of Innovation, Sources of Japan’s Technological Edge)
Japan had in fact created a National Innovative System in the1980’s,
which had proved to be extremely successful. However,bythe1990’s,the


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