ABSTRACT
This chapter discusses Japanese institutions supporting technical change. On the one hand, there is the aim of further developing an understanding of the workings of capitalist economies, with an underlying argument about the vitality of technology. On the other hand, there is the aim of understanding the development of technology in society, in specifically capitalist societies. The chapter analyzes the Japanese economy with reference to societal organization for the Japanese national system of innovation. The understanding of the capitalist system in relation to technological change can be called a national system of innovation. In the case of Japan after World War II, the creation and sustainment of high rates of economically successful technological change has been favored by the particular organization of Japanese capitalism. The four traits of Japanese culture group orientation, drive for self-sufficiency, suspicion of foreigners, and perception of own uniqueness have had some important influences on Japanese economic success and diffusion of innovation.
