Innovation performance, policy, and infrastructure : a comparison of Japan and the U.S.

Abstract

With flagship corporations in Japan struggling to complete a highly globalized market against increased competition from the US and Asia, the Japanese government has been striving to increase the competitiveness and improve the infrastructure for innovation. In order to regain its standing in the world market, the US government has also been stepping up its efforts to increase opportunities for innovation and strengthen critical partnerships between academia and the private sector. The different approaches taken will be analyzed in terms of their efficacy and ability to convert research into product development and, ultimately, commercialization. This thesis will explore the nations and companies that are seen as innovative in order to understand the critical factors for success. Also, the drivers of innovation will be looked at in detail and then applied to both a Japanese and US context. As the government plays a fundamental role in fostering innovation, the Japanese public sector's contribution and the US government's approach will be looked at in detail and then compared and contrasted in order to decipher the most effective policies for each country. Additionally, academia's role in promoting innovation will be highlighted, with MIT and Tokyo University acting as key examples for the ability of academic institutions to bridge the academic and business worlds. From the comparisons of the roles of academia and government in both the US and Japan, several recommendations will be made. These will center on the US's approach to provide a robust framework in which innovation can thrive, which is contrast to Japan's approach, which relies more on government funding for R&D to quasi-governmental research institutions. The addition of the most successful components of strategies employed in the public sector and in academia in the US to Japan's current approach may provide improve collaborations across sectors and enhance the environment for innovation to thrive.