Technology and Industrial Development in Japan: Building Capabilities by Learning, Innovation, and Public Policy

By Hiroyuki Odagiri; Akira Goto | Go to book overview

1 Introduction

1.1 THE ISSUE

Three strands of thought have emerged during the past decade to explain how the economy, industry, and business develop. Among these, probably the most sympathetic to the neoclassical economic theory is the so-called new growth theory or the endogenous growth theory. This theory recognizes technical progress as a major force in economic growth and tries to formulate an equilibrium growth model in which technical progress is generated as an endogenous outcome of an economic system (see Romer, 1990, 1994; Grossman and Helpman, 1991, 1994). For an earlier effort in this direction by one of us, see Odagiri ( 1981).

The second, which is more in line with the Schumpeterian view, is the evolutionary theory proposed by Nelson and Winter ( 1982). They do not assume that firms maximize profits over well-defined and exogenously given choice sets. Instead, these firms are assumed to have certain capabilities and decision rules at any given time. 'Over time these capabilities and rules are modified as a result of both deliberate problem-solving efforts and random events. And over time, the economic analogue of natural selection operates as the market determines which firms are profitable and which are unprofitable, and tends to winnow out the latter' ( Nelson and Winter, 1982: 4).

The concept of capabilities has been also emphasized by Chandler in his discussion of the development of industry and business in the USA, the UK, and Germany since the mid-eighteenth century. To him, 'at the core of this dynamic [in the development of modem capitalism] were the organizational capabilities of the enterprise as a unified whole. These organized capabilities were the collective physical facilities and human skills as they were organized within the enterprises.... But only if these facilities and skills were carefully coordinated and integrated could the enterprise achieve the economies of scale and scope that were needed to compete in national and international markets and to grow' ( Chandler, 1990: 594). That is, to create, maintain, accumulate, and utilize

-1-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Technology and Industrial Development in Japan: Building Capabilities by Learning, Innovation, and Public Policy
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 316

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.