Abstract
The current mode of competition in the Japanese industry is competition for the top tier. This is essentially competition for the highest asset value of the business but not for long-term excellence. The author reviews the history of this type of competition, discusses problems inherent to it, including possible moral hazard, and points out that it does not favor planning for the uncertain future for which the traditional Japanese management was prepared with accumulated internal resources. This situation requires that the Science and Technology Basic Plan incorporate careful strategies for commercialization of its outcomes. The key for long-term survival strategy is quest for uniqueness.
