Kavan Choksi – How Has Japan Leveraged Technology For Their Economic Growth

 

In recent years, Japan has become a technological leader in the world and is known for its outstanding innovation. From smartphones to renewable energy, the nation has always been at the forefront of technical news across the globe. 

For more than 100 years, the science and technological relations between the USA and Japan have been comprehensive. This predominant pattern for interaction historically has entailed a dominant flow of expertise and technology from the USA to Japan primarily via their business and industrial relations but also via their interactions revolving around universities and laboratories. 

Kavan Choksi- Japan and its rapid economic rise after the Second World War 

Business and finance expert Kavan Choksi states that after the Second World War, Japan went on to refine its private sector and government approaches that were created earlier for reducing costs and optimizing the inflow as well as the diffusion of technologies from foreign lands. The control of the government over trade and direct foreign investment permitted the nation to have a coordinated approach towards obtaining technology from companies in other countries for restricted market access and fees for licensing. 

The focus of Japan is on innovation and technology for economic development

The growth of the Japanese economy can be traced back to the nation’s focus on innovation and technology. After the Second World War, Japan commenced a period of rapid growth known as the “Economic Miracle.” This growth was accelerated by a heavy investment in science and technology that led to significant breakthroughs in the field of automobiles, electronics, and shipbuilding. These advancements assisted Japan in becoming one of the globe’s primary exporters and made it possible to attain fast economic growth. 

Acquiring lessons from a foreign land for growth 

It was this acquisition, as well as the effective adaptation and enhancement of technologies from foreign lands by Japan that served as the basis for its rapid economic progress and global competitiveness in multiple manufacturing industries. The government of Japan and its role in acquiring and diffusing technologies complemented well with the evolution of superior products as well an enterprise system in the Japanese industry.

Asymmetrical market access 

The market access in Japan is asymmetrical- this means there is restricted access of US companies to the markets in Japan and juxtaposed with the open access of companies in Japan to the market in the USA. This trend had a prolonged adverse impact on the competitiveness of many industries in the USA, along with the market positions of some companies. 

Business and finance expert Kavan Choksi states now the scenario has changed, and the industries and governments have reduced leverage to extract technology from companies in other nations than they once had. There is now less score for low-risk borrowing, and the country is now rebuilding its efforts to create more domestic capabilities for the generation of essential innovations and new approaches to global cooperation. The success of Japan can be attributed to many factors like a robust educational system and government policies that have been supportive of the task.