ABSTRACT
A slew of factors promote industrial development, such as increased demand in the developed market, increased supply capacity due to technological innovation, as well as the government’s industrial policies. The technological innovation of traditional industries is more important, because they have an advantage in terms of quantity, and the development of grassroots technologies is highly supported. The pattern of industrial development from traditional to modern industries in modern Japan also applies to many other developing countries. The government had a greater role in technological innovation than in other fields, because technology is of the nature of public goods and it is not easy to corner the market. The Japanese government promoted this early on, which produced a wealth of applied talent for the development of traditional industries and modern industries. Traditional industries were in the majority in the early days, but the focus then shifted to modern industries.
