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Structural Impediments to Growth in Japan$
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Magnus Blomstrom, Jennifer Corbett, and Fumio Hayashi

Print publication date: 2003

Print ISBN-13: 9780226060217

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226060231.001.0001

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Is Japan's Innovative Capacity in Decline?

Is Japan's Innovative Capacity in Decline?

(p.191) 7 Is Japan's Innovative Capacity in Decline?
Structural Impediments to Growth in Japan

Lee Branstetter

Yoshiaki Nakamura

University of Chicago Press

This chapter documents, at the microlevel and the aggregate level, a slowdown in the growth rate of Japanese research productivity. Following a decade of convergence with the United States in terms of R&D inputs and outputs in the 1980s, Japanese and U.S. innovation trends diverged sharply in the 1990s. Measured in a common currency, real R&D outlays in Japan have grown much more slowly than in the United States. The gap in patent output that was closing rapidly in the 1980s began expanding again in the 1990s. The chapter concludes that there are reasonable grounds for concern about the relative performance of Japanese manufacturing firms in technology-intensive industries.

Keywords:   R&D, research productivity, innovation trends, patent output, manufacturing firms

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