ABSTRACT
In this chapter, we provide an example of how social/cultural factors might account for the difference in information technology investments and productivity gains between Japan and the United States. The example, which is focused on information technology and business organization, is only one of the various forces that may explain the disparity with regard to the productivity growth path between Japan and the United States. Numerous other factors, some related to culture, some related to government regulation, and some related to the state of the economy and financial markets may be taken into account in explaining the Japanese situation.
