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Foreign Technology Acquisition Policy and Firm Performance in Japan, 1957-1970: The Japanese Industrial Policy Revisited

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  • Kozo Kiyota

    (Faculty of Business Administration, Yokohama National University)

  • Tetsuji Okazaki

    (Faculty of Economics, The University of Tokyo)

Abstract

We examine the cause and effect of technology acquisition policy on firm performance, using firm-level data between 1957 and 1970. Our results indicate that in the technology acquisition licensing, the government screened a firm's application, based on (i) the industry that the firm belonged to and (ii) firm's sales ranking in the industry. As a result, large but inefficient firms tended to acquire more technologies before the deregulation. Despite such screening process, the technology acquisition policy did not result in a serious failure. The firms that acquired technology grew much faster than those did not during the regulation period.

Suggested Citation

  • Kozo Kiyota & Tetsuji Okazaki, 2004. "Foreign Technology Acquisition Policy and Firm Performance in Japan, 1957-1970: The Japanese Industrial Policy Revisited," CIRJE F-Series CIRJE-F-274, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2004cf274
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    References listed on IDEAS

    as
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