Abstract
This article analyses the glowth pattern of the Japanese and Korean textile industries, focusing on the source of technology. As a result of statistical analysis, it was found that investment-oriented large up-stream firms and technology-oriented small mid-stream firms are supplementary in Japan, but that in Korea, the smaller firms are more investment-intensive than the larger ones irrespective of the processes involved. Such a difference seems to have been derived from the different histories through which keiretsu are organised in the two countries. In Japan, up-stream firms helped mid-stream firms develop process technology when introducing new synthetic fibres. The mid-stream firms have now grown up to be key actors in the quick-response system. On the other hand, weaving firms, diversified from textile merchants, organised keiretsu earlier than yarn producers using the power of procuring imported synthetic fibre in Korea. Depending on overseas merchandises, small mid-stream companies remained as subcontractors to the mass-production system, lowering the rate of operation due to recent productivity improvements on the part of large firms.
