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Manufacturing Sectoral Growth in the USA and Japan: Relevance to SMEs, Organizational Innovations, and Recent Economic Growth

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Abstract

Although economic growth is inherently linked with the structure and nature of SMEs (e.g. their number, industry concentration, size, degree of outsourcing, etc), as this has been shown in the existing literature, OIs, more generally, are the context in which SMEs operate and hence OIs ought to be more closely examined in order to further understand the complex process of economic growth and the particular impact of SMEs on the latter. In this paper, a detailed comparison of the growth of manufacturing sectors in the USA and Japan is used as an indirect way to demonstrate the following proposition. Although SMEs have played a positive role in the postwar economic Japanese miracle, they are not a sufficient force for a sustainable economic growth, as the recent protracted recession in Japan shows. It is only when technological innovations and in particular OIs take place in the economy that this type of growth is possible, as this is also demonstrated in the recent American prolonged economic growth.

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  • Sanidas, Elias, 2002. "Manufacturing Sectoral Growth in the USA and Japan: Relevance to SMEs, Organizational Innovations, and Recent Economic Growth," Economics Working Papers wp02-09, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp02-09
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    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. Takatotshi Ito, 1996. "Japan and the Asian Economies: A 'Miracle' in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 205-272.
    3. Mowery,David C. & Nelson,Richard R. (ed.), 1999. "Sources of Industrial Leadership," Cambridge Books, Cambridge University Press, number 9780521645201, September.
    4. Sanidas, E., 2001. "The Successful Imitation of the Japanese Lean Production System by American Firms: Impact on American Economic Growth," Economics Working Papers wp01-02, School of Economics, University of Wollongong, NSW, Australia.
    5. repec:fth:harver:1487 is not listed on IDEAS
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    1. Sanidas, Elias, 2002. "Leading Manufacturing Sectors in the USA and Japan During 1899-1937 and Organizational Innovations: Embeddedness for Corporate Strategy," Economics Working Papers wp02-20, School of Economics, University of Wollongong, NSW, Australia.

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    Keywords

    organizational innovations; disembodied technology; firms; economic growth; historical review;
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