ABSTRACT
Japan recovered from the Pacific War as the industrial leader in the region by the 1960s. Subsequent emergence of her East Asian neighbors three decades later as the “world factory” for electronics, textiles, and automobiles has radically changed the industrial landscape (Urata 2006). Japan remains a powerhouse in regional manufacturing as investor, innovator, and supplier of key components (METI 2006a). But the changing economic profile today of a region fueled by investment and trade by multiple nations has begun to dilute Japan’s soft power in the region. Could a shift from assembly chains to knowledge networks propel Japan back into a leadership role in the region’s economic community?
