ABSTRACT
This contribution focuses on the recent changes of technology policies in Japan. After a short introduction on the role of government in a market economy and a discussion on the history of Japanese policies until the 1970s, I will examine the changes in the environment which have forced the government to adopt its policies. The most important changes, which include increasing internationalization and pressure from outside (especially that of the US) to change the trade balance, growing independence and confidence of Japanese firms, and the entry of Japan into the new edge technologies, demand a completely different policy than hitherto pursued. The shift from applied to basic research and the consequences for the effectiveness of the policy instruments of MITI will be the focus of attention.
