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

What The linked States Can Learn From japan lacquer and the quaternion Little Dragons in order to achieve theirindustrialization goals have a diverse aline of policies ranging from limitedentitlement programs to a education and government bureaucracy that stressesachievement and meritocracy. nevertheless one of the most significant innovations ofJapan and the Four Little Dragons is in that location industrial polity which targetsimproving specific sectors of the economy by concentrate R&D, subsidies, and taxincentives to specific industries that the government wants to promote. TheUnited States could adopt just about of these industrial policies to cargon fosteremerging high tech businesses and help live U.S. business remain competitivewith East Asia.In Japan the government both during the Meiji period and the post worldWar II period followed a policy of active, sector selective industrial targeting.Japan used basically the same model during both historical periods. The Nipponesegovernment would focus its tax incentive programs, subsidies, and R&D on what itsaw as emerging industries. During the Meiji period Japan focused its attendingon emulating western technology such as trains, steel production, and textiles.The Meiji leading took taxes levied on agriculture to fund the conk outment ofthese new 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 currently heavilysupported by the government by dint of subsidies and tax breaks to farmers, steelproducers, and other industries that have been hurt by extraneous competitionbecause they are predominantly low-tech industries. But this economic policy ofthe U.S. is almost a complete reversal of the economic policies of Japan and theFour Little Tigers sooner of fostering new businesses and high tech perseveranceit supports out of date and low t ech firms who have political clout.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 rather it stagnatesinnovation by providing incentives primarily to existing business. The structureof U.S. industrial policy like the structure of an advance welfare state hasemphasized honor 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 model 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