What The United States Can Learn From Japan :: essays research papers

What The United States Can Learn From japanjapan and the Four Little Dragons in order to achieve theirindustrialization goals get hold of a diverse set of policies ranging from limitedentitlement programs to a education and disposal bureaucracy that stressesachievement and meritocracy. But one of the most significant innovations ofjapan and the Four Little Dragons is there industrial policy which targetsimproving proper( rearnominal) fields of the economy by focusing R&D, subsidies, and tax inducements to specific industries that the disposal wants to promote. TheUnited States could adopt some of these industrial policies to sponsor foster rising eminent tech businesses and help live U.S. business remain matchedwith East Asia.In Japan the government both during the Meiji compass point and the post WorldWar II period followed a policy of active, sector selective industrial targeting.Japan employ basically the same manakin during both historical periods. The Japanesegover nment would focus its tax incentive programs, subsidies, and R&D on what itsaw as emerging industries. During the Meiji period Japan focused its attentionon emulating western technology such(prenominal) as trains, steel production, and textiles.The Meiji leaders took taxes levied on agriculture to fund the ripening ofthese peeled industries. Following World War II Japanese industries used this samestrategic industrial policy to develop the high-tech, steel, and car industriesthat Japan is known for today. Some American industries are circulating(prenominal)ly heavily back up by the government through subsidies and tax breaks to farmers, steelproducers, and other industries that welcome been hurt by foreign competitionbecause they are predominantly low-tech industries. But this economic policy ofthe U.S. is almost a complete blow of the economic policies of Japan and theFour Little Tigers instead of fostering new businesses and high tech industryit supports out of date and low t ech firms who have political clout. Theexisting economic policy of the United States fails to help high tech businessesdevelop a competitive advantage on the world market instead it stagnatesinnovation by providing incentives primarily to existing business. The structureof U.S. industrial policy like the structure of an advance public assistance state hasemphasized rewarding powerful lobbying groups and has not targeted emergingsectors of the economy. The current U.S. industrial policy is a distributionstrategy and not a development strategy.Instead of this ad-hoc industrial policy the United States should followJapans representative of strategic targeting of emerging technology. The U.S. instead ofpouring its money into subsidies and tax breaks for failing low-tech industriesshould provide loans, subsidies and R&D money for firms that are producing hightechnology products. Unfortunately, there are several impediments to copying