ABSTRACT
The post-war evolution of Japan's electronics sector can be traced back to several factors. Firstly, spectacular growth in personal income resulted in strong demand for consumer electronics, mainly audio and video equipment. Secondly, Japanese electronics firms found their products readily accepted by overseas consumers, and exports soared. Thirdly, the government consciously stimulated the growth of the industry. The Japanese electronics industry not only gained in importance domestically, but also internationally. In consumer electronics Europe appears to match Japan but market restrictions in Europe and the United States have caused significant shifts of productive capacity from Japan to these regions. Analysis of Foreign direct investment (FDI) by the Japanese electronics industry is hampered by the lack of separate statistics. Official data combine electronics and electrical equipment into one industry, 'Electrical machinery'. The industry first responded with FDI when its export competitiveness was drastically affected by successive yen revaluations and the labour shortages of the early seventies.
