Abstract
An analysis is made of the technology management and policy concerns in the transition to the knowledge-driven economy in Japan. Japan has been competitive in the old economy but may be lagging behind in the new economy. The traditional areas of strengths are no longer sufficient for meeting mega-competition in the new economy. Japanese firms would have to undergo major structural as well as managerial changes in order to be competitive in the knowledge-driven economy. The Japanese corporate weaknesses are linked to the weaknesses in the innovation systems. Shifts in innovation trajectory are discussed taking the case of robotics, which is a sector in the old economy that is becoming more knowledge-driven recently. Robotic innovations have been showing characteristics of 'Complex Trajectories', which are different from the traditional 'Streamlined Trajectories'. Technology management and policy recommendations are discussed at different hierarchical decision making levels in the innovation system. The Japanese government policies, which have been technology-push oriented, will have to become more demand-driven and diffusion oriented.
