By Martin Fransman
Many have defined the japanese aggressive good fortune in details know-how; only a few have defined it. during this booklet Martin Fransman advances our figuring out by way of constructing the idea that of the japanese Innovation System--an association together with competing and cooperating deepest businesses, govt policy-makers and researchers, and universities. it will likely be of curiosity to all academics, scholars and coverage makers attracted to technological festival.
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Extra resources for The market and beyond: Cooperation and competition in information technology in the Japanese system
The main aim of ETL was to undertake research in areas that were likely to be of longer-run benefit to Japan's industrial development. As part of the powerful Ministry of International Trade and Industry, ETL's budget was allocated independently of the financial performance of the private companies which it served. This meant that ETL could select research areas without taking account of the short to medium-term commercial pay-off. On the other hand, since one of MITI's overall briefs was to ensure Japan's longer-run international competitiveness, ETL's research agenda was to some extent constrained by this pragmatic general objective.
Only Hitachi was a significant member of both groups. From the end of the war and through the 1950s the first group of companies benefited greatly from a number of telephone expansion programmes initiated by the Ministry and NTT. The main ones during this period were the three-year rehabilitation programme from April 1946 to March 1949, and the five-year programmes from October 1953 to March 1958 and from April 1958 to March 1963. In addition, the outbreak of the Korean War in 1950, and the expansion of radio broadcasting and television in the early 1950s, further stimulated the activities of these companies.
On the one hand were the companies that had tended to specialize in the production of telecommunications equipment. These firms included Nippon Electric (NEC), Fujitsu, Hitachi and Oki. They had developed a close relationship with the Ministry of Communications and its successor from 1952, the Ministry of Post and Telecommunications. From 1952, with the formation of Nippon Telegraph and Telephone as a distinct organization charged with responsibility for the maintenance and development of the telecommunications network, these four firms became the main members of NTT's group of supplying firms, known as the Den Den family.