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.
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