抄録
It is common knowledge that the Japanese economy has been in a long-term stagnation for the past 10 to 20 years. A company that is to continue its past growth must increase productivity by adding value. Innovation is essential for this.
Protracted economic decline is indicative of impaired management capability. Using various data showing corporate activities in the Japanese economy since the beginning of the twenty-first century, I investigate management attitude toward and the decisions made regarding innovation. I find that less creative innovation is consequent to, among others, management indecisiveness in taking risks and complacency in promptly acknowledging the importance of emerging IT or digital technologies.
I conclude that there is a lack of proper incentives for technological innovation in information and communication technologies. The results highlight the significance of innovation for companies from the perspective of corporate governance and business ethics.
