IDEAS home Printed from https://ideas.repec.org/a/eee/exehis/v48y2011i2p272-291.html
   My bibliography  Save this article

The origins of Japanese technological modernization

Author

Listed:
  • Nicholas, Tom

Abstract

Explanations of Japanese technological modernization from the late nineteenth to the mid-twentieth century have increasingly focused on domestic capabilities as opposed to the traditional emphasis on knowledge transfers from the West. Yet, the literature is mostly qualitative and it lacks a comparative context. This article presents quantitative metrics derived from patent data covering Japan, the United States, Britain and Germany and it also exploits non-patent based sources. The evidence shows that Japanese domestic inventive activity exhibited a pattern of rapid modernization to the technology frontier in terms of its level, sectoral distribution and quality. Domestic capabilities were much stronger than is often supposed in accounts that stress the prevalence of Western technology diffusion. A long run expansion in indigenous development set a favorable foundation for the economic growth miracle Japan experienced after the Second World War.

Suggested Citation

  • Nicholas, Tom, 2011. "The origins of Japanese technological modernization," Explorations in Economic History, Elsevier, vol. 48(2), pages 272-291, April.
  • Handle: RePEc:eee:exehis:v:48:y:2011:i:2:p:272-291
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0014-4983(11)00002-7
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Odagiri, Hiroyuki & Goto, Akira, 1996. "Technology and Industrial Development in Japan: Building Capabilities by Learning, Innovation and Public Policy," OUP Catalogue, Oxford University Press, number 9780198288022.
    2. Howe, Christopher, 1996. "The Origins of Japanese Trade Supremacy," University of Chicago Press Economics Books, University of Chicago Press, number 9780226354859, December.
    3. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
    4. Ma, Debin, 2004. "Why Japan, Not China, Was the First to Develop in East Asia: Lessons from Sericulture, 1850-1937," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 369-394, January.
    5. Hunter, Janet, 2004. "Institutional change in Meiji Japan: image and reality," Economic History Working Papers 13300, London School of Economics and Political Science, Department of Economic History.
    6. Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2006. "Distance to Frontier, Selection, and Economic Growth," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 37-74, March.
    7. Fukasaku, Yukiko, 1992. "Origins of Japanese industrial research: Prewar government policy and in-house research at Mitsubishi Nagasaki Shipyard," Research Policy, Elsevier, vol. 21(3), pages 197-213, June.
    8. Kazuo Wada, 2006. "The fable of the birth of the Japanese automobile industry: A reconsideration of the Toyoda-Platt agreement of 1929," Business History, Taylor & Francis Journals, vol. 48(1), pages 90-118.
    9. Tanimoto, Masayuki (ed.), 2006. "The Role of Tradition in Japan's Industrialization: Another Path to Industrialization," OUP Catalogue, Oxford University Press, number 9780198292746.
    10. Josh Lerner, 2009. "The Empirical Impact of Intellectual Property Rights on Innovation: Puzzles and Clues," American Economic Review, American Economic Association, vol. 99(2), pages 343-348, May.
    11. Tom Nicholas, 2011. "Independent invention during the rise of the corporate economy in Britain and Japan," Economic History Review, Economic History Society, vol. 64(3), pages 995-1023, August.
    12. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    13. Goto, Akira & Motohashi, Kazuyuki, 2007. "Construction of a Japanese Patent Database and a first look at Japanese patenting activities," Research Policy, Elsevier, vol. 36(9), pages 1431-1442, November.
    14. Schankerman, Mark & Pakes, Ariel, 1986. "Estimates of the Value of Patent Rights in European Countries during the Post-1950 Period," Economic Journal, Royal Economic Society, vol. 96(384), pages 1052-1076, December.
    15. Daniel M. Bernhofen & John C. Brown, 2004. "A Direct Test of the Theory of Comparative Advantage: The Case of Japan," Journal of Political Economy, University of Chicago Press, vol. 112(1), pages 48-67, February.
    16. Diego Comin & Bart Hobijn, 2010. "An Exploration of Technology Diffusion," American Economic Review, American Economic Association, vol. 100(5), pages 2031-2059, December.
    17. Randall K. Morck, 2005. "A History of Corporate Governance around the World: Family Business Groups to Professional Managers," NBER Books, National Bureau of Economic Research, Inc, number morc05-1.
    18. Randall Morck & Masao Nakamura, 2005. "A Frog in a Well Knows Nothing of the Ocean: A History of Corporate Ownership in Japan," NBER Chapters, in: A History of Corporate Governance around the World: Family Business Groups to Professional Managers, pages 367-466, National Bureau of Economic Research, Inc.
    19. Tom Nicholas, 2008. "Does Innovation Cause Stock Market Runups? Evidence from the Great Crash," American Economic Review, American Economic Association, vol. 98(4), pages 1370-1396, September.
    20. William R. Kerr, 2008. "Ethnic Scientific Communities and International Technology Diffusion," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 518-537, August.
    21. Daniel M. Bernhofen & John C. Brown, 2005. "An Empirical Assessment of the Comparative Advantage Gains from Trade: Evidence from Japan," American Economic Review, American Economic Association, vol. 95(1), pages 208-225, March.
    22. Saxonhouse, Gary, 1974. "A Tale of Japanese Technological Diffusion in the Meiji Period," The Journal of Economic History, Cambridge University Press, vol. 34(1), pages 149-165, March.
    23. Lee G. Branstetter & Raymond Fisman & C. Fritz Foley, 2006. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 321-349.
    24. Francesco Caselli & Wilbur John Coleman II, 2006. "The World Technology Frontier," American Economic Review, American Economic Association, vol. 96(3), pages 499-522, June.
    25. Fumio Hayashi & Edward C. Prescott, 2008. "The Depressing Effect of Agricultural Institutions on the Prewar Japanese Economy," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 573-632, August.
    26. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
    27. Petra Moser, 2005. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World's Fairs," American Economic Review, American Economic Association, vol. 95(4), pages 1214-1236, September.
    28. Benner, Mary & Waldfogel, Joel, 2008. "Close to you? Bias and precision in patent-based measures of technological proximity," Research Policy, Elsevier, vol. 37(9), pages 1556-1567, October.
    29. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    30. Mitchener, Kris James & Ohnuki, Mari, 2009. "Institutions, Competition, and Capital Market Integration in Japan," The Journal of Economic History, Cambridge University Press, vol. 69(1), pages 138-171, March.
    31. John P. Tang, 2011. "Technological leadership and late development: evidence from Meiji Japan, 1868–1912," Economic History Review, Economic History Society, vol. 64(s1), pages 99-116, February.
    32. Godo, Yoshihisa & Hayami, Yujiro, 2002. "Catching Up in Education in the Economic Catch-Up of Japan with the United States, 1890-1990," Economic Development and Cultural Change, University of Chicago Press, vol. 50(4), pages 961-978, July.
    33. Diego A. Comin & Martí Mestieri, 2010. "An Intensive Exploration of Technology Diffusion," NBER Working Papers 16379, National Bureau of Economic Research, Inc.
    34. Nicholas, Tom, 2010. "The Role of Independent Invention in U.S. Technological Development, 1880–1930," The Journal of Economic History, Cambridge University Press, vol. 70(1), pages 57-82, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stephen D Billington & Alan J Hanna, 2021. "That’s classified! Inventing a new patent taxonomy [Text matching to measure patent similarity]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 678-705.
    2. Nuvolari, Alessandro & Vasta, Michelangelo, 2015. "The Ghost in the Attic? The Italian National Innovation System in Historical Perspective, 1861–2011," Enterprise & Society, Cambridge University Press, vol. 16(2), pages 270-290, June.
    3. Ömer Özak, 2018. "Distance to the pre-industrial technological frontier and economic development," Journal of Economic Growth, Springer, vol. 23(2), pages 175-221, June.
    4. Egor Leonidovich Domnich, 2012. "The Scientific and Technological Reserve of the Far Eastern Federal District and the Northeast Asia Countries," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 3, pages 79-110.
    5. Makiko Hino & Mototsugu Fukushige, 2014. "Catching up and falling behind in technological progress: the experience of the textile and chemical industries in Italy between 1904 and 1937," Discussion Papers in Economics and Business 14-14, Osaka University, Graduate School of Economics.
    6. Ömer Özak, 2012. "Distance to the Technological Frontier and Economic Development," Departmental Working Papers 1201, Southern Methodist University, Department of Economics.
    7. Carillo, Mario F., 2024. "Human capital composition and long-run economic growth," Economic Modelling, Elsevier, vol. 137(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicholas, Tom, 2011. "Cheaper patents," Research Policy, Elsevier, vol. 40(2), pages 325-339, March.
    2. Tom Nicholas, 2013. "Hybrid Innovation In Meiji, Japan," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 575-600, May.
    3. David Andersson & Thor Berger & Erik Prawitz, 2023. "Making a Market: Infrastructure, Integration, and the Rise of Innovation," The Review of Economics and Statistics, MIT Press, vol. 105(2), pages 258-274, March.
    4. John P. Tang, 2016. "A tale of two SICs: Japanese and American industrialisation in historical perspective," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(2), pages 174-197, July.
    5. John P. Tang, 2016. "A tale of two SICs: Japanese and American industrialisation in historical perspective," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(2), pages 174-197, July.
    6. Gamba, Simona, 2017. "The Effect of Intellectual Property Rights on Domestic Innovation in the Pharmaceutical Sector," World Development, Elsevier, vol. 99(C), pages 15-27.
    7. Galang, Roberto Martin N., 2014. "Divergent diffusion: Understanding the interaction between institutions, firms, networks and knowledge in the international adoption of technology," Journal of World Business, Elsevier, vol. 49(4), pages 512-521.
    8. Çağatay Bircan & Ralph De Haas, 2020. "The Limits of Lending? Banks and Technology Adoption across Russia," The Review of Financial Studies, Society for Financial Studies, vol. 33(2), pages 536-609.
    9. Nicholas Bloom & John Van Reenen & Heidi Williams, 2019. "A toolkit of policies to promote innovation," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
    10. Hötte, Kerstin, 2023. "Demand-pull, technology-push, and the direction of technological change," Research Policy, Elsevier, vol. 52(5).
    11. Montobbio, Fabio & Sterzi, Valerio, 2013. "The Globalization of Technology in Emerging Markets: A Gravity Model on the Determinants of International Patent Collaborations," World Development, Elsevier, vol. 44(C), pages 281-299.
    12. Alessandro Nuvolari & Michelangelo Vasta, 2015. "Independent invention in Italy during the Liberal Age, 1861–1913," Economic History Review, Economic History Society, vol. 68(3), pages 858-886, August.
    13. Joshua D. Hall, 2019. "Measuring the Diffusion of Technologies Through International Trade," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(4), pages 445-459, November.
    14. Lybbert, Travis J. & Zolas, Nikolas J., 2014. "Getting patents and economic data to speak to each other: An ‘Algorithmic Links with Probabilities’ approach for joint analyses of patenting and economic activity," Research Policy, Elsevier, vol. 43(3), pages 530-542.
    15. David Andersson & Mounir Karadja & Erik Prawitz, 2022. "Mass Migration and Technological Change," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 1859-1896.
    16. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    17. Pamela J. Smith & Sebastian J. Anti, 2022. "How does TRIPs compliance affect the economic growth of developing countries? Application of the Synthetic Control method," The World Economy, Wiley Blackwell, vol. 45(12), pages 3873-3906, December.
    18. Philippe Aghion & Peter Howitt & Susanne Prantl, 2015. "Patent rights, product market reforms, and innovation," Journal of Economic Growth, Springer, vol. 20(3), pages 223-262, September.
    19. Ikeda, Daisuke & Morita, Yasuko, 2020. "The effects of barriers to technology adoption on japanese prewar and postwar economic growth," Journal of the Japanese and International Economies, Elsevier, vol. 55(C).
    20. Das, Gouranga G. & Drine, Imed, 2020. "Distance from the technology frontier: How could Africa catch-up via socio-institutional factors and human capital?," Technological Forecasting and Social Change, Elsevier, vol. 150(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:exehis:v:48:y:2011:i:2:p:272-291. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622830 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.