National Characteristics of Innovation in Japan - PowerPoint Presentation Example

Toyota Motors is the leading company in the world in terms of R&D spending. This explains why the company is a global leader in the automobile industry.

In the case of Japan, these forces have been the government, the military, educational institutions, economic and financial institutions, the technological environment, and the management practices of Japanese managers.

The Japanese government has long been involved in the development of innovation in Japan. It set up several research institutions and universities in addition to developing policies to promote innovation among local firms. The military was not only a buyer of Japanese technology but also ran its own plants where innovative technologies were developed, practiced, and then shared with other sectors. Educational institutions like the Institute of Physical and Chemical Research and economic institutions such as the Ministry of International Trade and Industry helped to promote innovation in commercial technologies. Finally, the management practices of Japanese managers encouraged incremental innovation through lifetime employment and job rotation.