Digital transformation and demographic change are usually seen as
two separate but equally threatening events that foreshadow job
replacement, industrial decline, and social bifurcation. Because
Japan is the world's frontrunner in demographic change with an
ageing and shrinking society, it is facing these two disruptions at
the exact same time. This creates a 'lucky moment,' as it presents
an opportunity to employ one as a solution for the problems caused
by the other. For example, Japan's traditional sectors are replaced
by digital systems that demand fewer people while offering new
jobs. Emerging technologies are opening fresh opportunities for
Japanese companies to compete globally. The twin disruptions are
also upending Japan's political economy. As companies reinvent
business strategies and employees reskill to pursue individual
careers, the state is reorganizing to find a new role in balancing
the unfolding demands of the digital economy.
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