Japan: "A Clear Standout"

Asia's Skyscraper Economies Hit a Glass Ceiling: "These should be heady days in Tokyo. One reminder of that came in a recent survey by the Economist Group, which declared Japan the world's most innovative nation. The rankings were calculated by comparing the number of patents per million of population for 82 nations. Japan was a clear standout. Yet China is getting most of the attention in Asia, followed closely by India. Japan needs to work harder to remind investors it's recovering, something to which Asia's traditional growth engine isn't accustomed. Tokyo is a cautionary tale. It boasts some of the best infrastructure anywhere, globally dominant companies, a highly educated labor force and prints Asia's only truly international currency. Yet Japan's failure to internationalize its markets means its appeal trails that of Hong Kong, Singapore and Seoul." -- William Pesek, Bloomberg

That summary seems pretty accurate from almost everything I've heard about the business of Japan. Very interesting piece in Bloomberg here. Some Asian markets are booming, but there are just as many warning signs for challenges ahead -- and most seem to be focused on Japan. The study that Pesek refers to is from the Economist Intelligence Unit and concludes in part that "Japan, Switzerland, the US, and Sweden are the world’s top four innovators among the 82 economies."
Comments:

Innovation is depend on R&D investment. Richer countries tend to invest more. Japan and U.S. are developed countries and companies invest average 10-15% of their revenue in R&D. Chinese companies invest less than 2% to R&D. It's going to change slowly. Earlier this year, Chinese gov has decided to incease R&D dollar to 4% (remember they are planned economy). The critical turning point for China is when they fix their intelligtual property right problem. Once they fix that, Chinese companies will start to build brands and invest more in R&D. Western countries always want China to fix the IP issue. But once China fix that, China will become a even stronger competitor.

Posted by dfan on July 20, 2007 at 07:24 PM JST #

Post a Comment:
Comments are closed for this entry.
About


Search

Archives
« April 2014
SunMonTueWedThuFriSat
  
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
   
       
Today
Bookmarks

No bookmarks in folder