Industrial structures in advanced countries are currently undergoing historic changes.
After 1990, the market economy expanded on a global scale, ushering in “the era of global mega-competition.” The dissolution and trasformation of socialism and the ecoomic development of Asia and Latin America have made “global optimal procuremant” a reality. As a result, production by advanced nations has flowed steadily out of the countries, creating situations described as the “hollowing out” of industries, or “de-industrialization.” Meanwhile, existing industries are maturing, making the creation of new industries an urgent need. Unless new industries are created, unemployment rates soar. This is why developed countries have adopted policies that support the creation of new industries.
As J. A. Schumpeter has pointed out, “new men and new firms” give birth to “new industries.” In other words, new industries are the result of entrepreneurship. To stimulate the creation of new industries, we must strengthen the entrepreneuraial sector.
Afer 1980, at the initiave of entrepreneurs, numerous new comopanies emerged in the U. S., leading to the creation of new industries. The movement acclerated after 1990, when industrial clusters were created and expanded. An example of a cluster is Silicon Valley, where the information communications industries are the base of R & D.
Now, Japan is a forerunner in the international economic community, and product innovation has become crucially important for most Japanese companies. Meanwhile, a growing number of large companies are relocating their production to other countries, and, as a result, existing industrial clusters are disintegrating rapidly. Smaller companies are closing down in growing numbers, and fewer businesses are starting up, which means that the number of smaller businesses relying on production technology is decreasing.
Despite all this, we are seeing a gradual increase in the number of smaller companies that carry out product innovation. The ideal scenario is for these companies to tie up with existing small, process-innovative companies to recreate indutrial clusters in Japan.
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