ABSTRACT
Economic analysis, both micro and macro, both static and dynamic, is complemented by sociological and legal considerations. Both Japanese entrepreneurs and the Japanese government have consistently followed Joseph A. Schumpeter’s lesson “that capitalist achievement does not typically consist of providing more silk stockings for queens but of bringing them within the reach of factory girls.” A similar assessment can be made of large-scale production of sophisticated products as optical instruments, transistors, and semiconductors. Microeconomic explanations of Japan’s performance stress the atypical intensity of the less-than-perfect competition that distinguishes Japanese markets; they explain it by organizational qualities as firm size, search for economies of scale, marketing, and overseas operations. The shortcomings that result from the subsystemic level of analysis of the theory, since it systematically focuses on instruments designed to solve problems arising from processes of internalization and processes of externalization.
