Japanese companies once led the world in technological innovation, but their struggles have become increasingly apparent in recent years. The strengths and challenges of Japan are examined from an expert perspective, including comparisons with Silicon Valley in the United States.
This article reexamines Japan's current status as a technological powerhouse, exploring what strengths remain today at Japanese companies that once drove technological innovation and what they lack. An interview with Richard Dasher, a special-appointed professor at Stanford University, sheds light on Japan's challenges.
Innovation is divided into two types, disruptive and incremental. Disruptive innovation involves creating new value and changing patterns of behavior. Japanese companies are said to excel at incremental innovation, making small improvements over the long term, supported by a system of lifetime employment.
Examples include technological innovations that changed the world, such as the Walkman, car navigation systems, QR codes and emoji on mobile devices. Lightweight, high-strength carbon fiber is said to have taken approximately 30 years to spread into aircraft and automobiles, underscoring the importance of long-term research and development.
The latter part of the article also discusses the state of Japanese startups and introduces the views of a senior chief researcher at the Japan Research Institute. It organizes the question of how Japan's foundation for innovation should be strengthened.