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Japan's Lost Decade: Did Decline in Innovation Lead to Loss of Competitiveness in Japanese Industries?

Author

Listed:
  • Masami Imai

    (Wesleyan University)

  • Jonah Wolfson

    (Wesleyan University)

  • Binghui Zheng

    (Wesleyan University)

Abstract

It is widely recognized that technological progress in the Japanese economy slowed down during the so-called “Lost Decade†of the 1990s. We attempt to shine additional light on the economic implications of this general slowdown in technological progress by examining the effect of changes in innovativeness over time on the international competitiveness of Japanese industries. Our econometric analysis deploys industry-level panel data on patenting activity and Japanese exports to the United States. We find that the loss of competitiveness in Japan's exporting industries in the 1990s is closely related to eroding growth in the innovativeness of these industries.

Suggested Citation

  • Masami Imai & Jonah Wolfson & Binghui Zheng, 2017. "Japan's Lost Decade: Did Decline in Innovation Lead to Loss of Competitiveness in Japanese Industries?," Economics Bulletin, AccessEcon, vol. 37(2), pages 1318-1326.
    • Handle: RePEc:ebl:ecbull:eb-17-00341
    as

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    References listed on IDEAS

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    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • F1 - International Economics - - Trade

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