ABSTRACT
Japan’s per capita nominal GDP peaked in 1995, and has been declining every year when compared to other developed countries. The Japanese economy has been stagnant since the beginning of the information age, starting in the mid-1990s. This means that Japan could not adapt to the information age. In developed countries, more than three-quarters of workers are engaged in tertiary industries. It is essential to add value to the service industry. The Japanese service industry has not been able to increase its productivity or add value to its services. An advanced service industry has not been born due to the delay in a digital transformation. It is thought that companies that utilize economies of scale with clear goals have an advantage in digitization. The reason is that the Japanese work ethic does not aim to clarify goals and dramatically exceed them, but only to find the immediate purpose of the work in order to improve what is immediately in front of them. In the future, as digital innovation continues to develop unique technologies such as AI and robots, Japanese companies will promote the development of the IT infrastructure because of the external pressure exerted by COVID-19 and will improve the efficiency of their service and manufacturing products through the use of AI. In this way, we may find hope for a revival of the Japanese economy.
