ABSTRACT
This chapter argues that the Japanese government has played and continues to play an important role in creating advantage for Japanese firms in world markets and presents an interpretation of the interplay between government and market during the high growth developmental years. It considers the institutional base on which this approach to policy rests. The chapter also considers whether the strategies and arrangements of the developmental years have been altered. It examines the present pattern of Japanese trade and presents whether it is simply a product of market forces or is shaped by policy. Japanese policy for industry and trade and the strategy of controlled competition for development rest on a very particular institutional and political base. Japanese policy is committed to developing the industries of the future, the sunrise Industries. The Superspeed Computer project is aiming at establishing Japanese superiority in superspeed components and computing architecture. Japanese firms built up internationally competitive product and production positions behind closed markets.
