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This includes spending six months as a visiting academic at the Economic Research Centre, in Nagoya University in Japan. His research interests are in the area of knowledge and innovation management ranging from theory to practice, with focus on developing and enhancing understandings of innovation systems and knowledge strategies particularly in technology SMEs. For more publications by this staff member, visit QUT ePrints , the University's research repository.
Completed supervisions Doctorate Strategic Capability Development: A multi-level case study of the role of knowledge integration within product innovation Individual agency as explanation of alliance development and change: A case study Information security management: A case study of an information security culture Technology Transfer Evaluation in the High Technology Industry: an Interdisciplinary Perspective From to about , Japan depended entirely on foreigners for scientific and academic guidance.
Thus, nearly all the teachers in the higher scientific and technological educational institutions were foreigners invited and employed by the Japanese authorities. But as time went on, they were rapidly replaced by Japanese scholars who had studied abroad or had received scientific training under foreign teachers, and who then initiated their own original courses of study.
An early example of this new regime was the Earthquake Prevention Research Council, established in , all of whose personnel were Japanese. Stage 2. Self-reliance policy for science and technology Drastic changes in the industrial structure of Japan were brought about by the policies of the Meiji government. A landmark was reached in , when, for the first time, the output of industry outstripped that of agriculture.
Structural changes accelerated the attainment of self-sufficiency in technology, thus consolidating the foundations of modern industries. During the First World War, when the introduction of foreign technology was abruptly suspended, the government made a determined effort to establish and realign state-run research laboratories serving manufacturing industries. At the same time, it gave friendly consideration to the views and proposals of private scientists and engineers about the opening of engineering institutes.
In an effort to devise an effective industrial policy, the government enlisted academicians and businessmen to form research councils in various fields. They dealt with such questions as the reduction of the price of industrial salt, the development of hydroelectric power, the promotion of technical education, and so on. They also advocated priority for the physical sciences along with the establishment of a chemical research laboratory. Impressed by their recommendations, the government established the Physiochemical Research Institute in , with a government subsidy and contributions from industrial circles.
The institute was a typical example of cooperation between government and private companies. Active interchange between the different research branches was encouraged in a liberal atmosphere. The institutes earned international esteem, not only for academic performance, but also for providing business opportunities. On the technological side alone, its successful results included Masatoshi Ohkochi's piston ring, Umetaro Suzuki's synthetic sake, and Kotaro Honda's magnetic steel. Two Japanese Nobel Prize winners were former members of this institute's staff.
The second stage of technological development in Japan could be defined as the age of self-reliance, even though the economy still depended heavily on imported technology.
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Stage 3. Process of catching up with advanced technology through further imitation After recovering from the ruinous conditions of the post-war years, the Japanese economy achieved a 10 per cent annual growth rate until the oil crisis. Underlying these achievements were government policies promoting domestic industry. At the same time, the import of foreign technology was strongly encouraged. After 30 years, the cost of imported technology amounted to 20 times that in Thus, Japan's technological recovery owed much to imported technology. The assimilation of this technology depended on a certain mature technological base that in turn was instrumental in reducing inputs, particularly those of manufactured goods, in accordance with government policies.
In the s and s, Japanese industry gravitated toward eventual self-reliance, thereby reducing its dependence on imports and achieving a high degree of independence in manufactured goods. The policies geared toward this self-reliance can be grouped into three categories: restricting imports of manufactured products; fostering domestic industries by protective measures; and promoting technology transfer from advanced countries.
The Ministry of International Trade and Industry MITI tried to foster domestic production in every manufacturing industry to increase the self-reliance of the industrial structure. Two large electric power plants, which could not be produced by Japanese electrical equipment manufacturers in the s, were imported, one from Westinghouse and one from General Electric. Thereafter, Japanese contractors were forced to produce subsequent power plants through licensing and using know-how from both manufacturers.
Another example is the computer industry. In , MlTI decided to start a computer industry in Japan with strong protection from import restrictions. MITI persuaded Japanese users of business computers to buy Japanese brands and required the government to purchase only domestic products. Technological assistance, subsidies, the establishment of a financial company for computer leasing, and other measures were applied to nurture domestic computer production. In addition to this tendency, one should note the specific technological conditions after the war.
During the war, Japan's technology was isolated from foreign technologies and had specialized in the military area of the munitions industry. The technological gap in between Japan and the US was too big to be eliminated in a short time. Development through imported technology of the then new industries, such as synthetic chemicals, petrochemicals, consumer durable goods, and electronics, was urgently needed.
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Whereas in more than 50 per cent of the technology imported had been developed before or during the Second World War, 4 in the s Japanese industries imported advanced technology which was invented in the US after the war. So far as technology was concerned, the fundamental behaviour of Japanese big business was directed toward the imitation of foreign technology and the acquisition of technical information faster than other companies.
The imitation of technology was more effective than its creation. The importation of established foreign technology obviated commercial risk and the uncertainties inherent in the development of newly created technology. It provided a rapid and effective method of enhancing the technological level of Japanese industries. Policies for the introduction of foreign technology The door permitting the entry of foreign technology, which had been closed since the war years, was reopened in when the government enacted two laws dealing, respectively, with the introduction of foreign capital and with foreign exchange and trade control.
These laws were designed to assist the post-war rehabilitation of the Japanese economy. Safeguards were included in the form of stipulations that such foreign technology should contribute to the improvement of the international balance of payments, and the corresponding policy on foreign exchange involved the control of the influx of foreign holders of technology, and resulted in the selective importation of foreign technologies of such high quality that their cost in external payments was warranted.
Moreover, from onward, substantial payments were received for technology exported from Japan. Of the technology imported, some 80 per cent was related to the machinery and chemical industries. In , the value of production derived from imported technology and allocated to domestic consumption equalled total imports as calculated on the basis of customs clearance. Japan had caught up with American standards in many spheres of technology by , and was able to start selling Japanese commodities, turned out by modern industrial complexes, at relatively low prices in other countries.
Stage 4. From imitative to creative technology According to estimations made by the Japan Productivity Centre, the labour productivity added value base of Japanese steel industries exceeded that of the United States in about Labour productivity in the electric appliance industries became superior in the mids, and in the automobile industries labour productivity is likely to exceed that of the United States in the s. The total balance of payments for technology is still unfavourable to Japan.
However, when the transactions are limited to newly contracted know-how and patents table 5 , Japanese technology exports have exceeded technology imports since The receipts through export from newly contracted patents in were almost double the payments for imported technology newly contracted in the same year. Thus, Japan is now a net exporter of technology. According to an analysis by the Institute of Investment Economics of the Development Bank of Japan, 8 Japanese industries have reduced their dependence on imported technology since The dependence on imported technologies is calculated by dividing the accumulated intellectual knowledge of imported technology payments for imported technology are capitalized into present values by the total domestic and imported stock of technological knowledge.
The dependence rate on imported technology was highest in at Table 5. Patent fees are paid by the receiver annually in proportion to production for 20 years, until expiration of the patent rights. Japanese payment for imported technology has increased because of the increased production based on import licences. Numbers in parentheses show payments for the first year of patents newly contracted in In this way, Japan's government and private industry have launched a joint campaign to foster high technology, with the emphasis not only on applied research but also on basic research.
Over the past 40 years, Japan has advanced from the status of a technically developing nation to that of a technically advanced nation, and has become a net exporter of technology, largely by improvements to existing technologies. Continuing as a net exporter of industrial technology might be possible in the future. Japan will have to recognize that the effort to develop new technologies requires societal change rather than economic power. The same type of analysis of US industries shows a similar tendency, 14 to 16 per cent in the s and 7 to 10 per cent in the s. The lower the dependency on imported technology, the higher the cost of developing new technology.
Debate continues about the degree to which technical originality or scientific creativity can be found among the Japanese, who are still widely regarded as inherently more skilful at adapting than at inventing. Japanese business is more adept in applied research than in basic research. Table 6 shows that the number of important innovations by Japanese inventors is not high, especially in terms of breakthrough inventions. However, in the s Japanese inventions in the field of electronics progressed rapidly and this has dramatically increased her share of the world patent market.
Four major factors which have influenced the development of Japanese independence in technology can be detected. High capacity for the absorption of technology Before acquiring self-reliance in technology, countries have to absorb modern technology imported from abroad. At that stage, the capacity for imitation is more important than creativity. The fundamental requirements for a capacity to absorb foreign technology are threefold: a high standard of education, assimilation of technology, and an average level of technology and scientific knowledge.
An increase in agricultural productivity must accompany industrialization at the incipient stage of economic development. In this connection, it is important that the educational standard of Japanese farmers was fairly high at that point. In the Tokugawa or Edo period, preceding Japan's industrial revolution, terakoya or temple schools the equivalent of private elementary schools numbered more than 15,, exceeding the number of elementary schools established in the early Meiji era.
According to an estimate made by Professor Ronald Table 6. Inhaber and M. Dore, the male literacy rate toward the end of the Tokugawa period was 40 per cent, while the female rate was in the order of 19 per cent. Japan's high literacy rate at the time made it easy to secure a high-quality labour force for the subsequent process of industrialization. It also facilitated the introduction of new strains of crops into farming villages. The introduction and expansion of elementary education from the beginning of the Meiji era contributed to the subsequent economic development.
However, it has to be borne in mind that Japan had enjoyed a high educational standard prior to industrialization. Japanese enterprises have shown a strong propensity for new technology. A notable characteristic of Japanese technical progress is the rapid diffusion of new technology in Japan. No new technology can help to strengthen national competitiveness unless it is applied to the production lines of many companies. An analysis by Professor Edwin Mansfield shows that conversion of half the steelmaking capacity in the United States to basic oxygen furnaces took 13 years after the development of that technology.
In Japan, basic oxygen furnaces accounted for 60 per cent of total capacity only seven years after the introduction of the American technology. This example suggests the reason why Japan has overtaken the United States in steelmaking, expanding its productivity to 1. The lesson is that in addition to the development of new technologies, the readiness to abandon old technologies, even with risk, is essential for the successful imitation of technology.
Another characteristic of the Japanese ability to absorb technology is the ingenuity of Japanese workers in responding to technological innovation. They feel a sense of intimacy with technology. American and European workers have often opposed the introduction of new technology, including the use of robots, but Japanese workers rarely think in this way.
In Japan's automobile factories, for example, each robot is called by a pet name. Robots are regarded as friends who can take over menial, unwanted chores; robotization in Japan is thus steadily expanding. To American workers, on the other hand, robots are only enemies that threaten them with possible unemployment. While considering the capacity to absorb technology, we cannot neglect the technological gap among domestic industries.
Japan's technological diffusion was accelerated by her specific industrial structure. Japan excels in technology where mass production is an important element, and where, at the same time, shared precision machining and assembly are prominent. Japanese competitiveness in the world market is strong in specific manufacturing industries such as automobiles, TVs, cameras, and other electronics. Generally, these industries rely heavily on parts makers and subcontractors. The Japanese industrial structure is characterized as a dual economy in which large- and small-scale industries coexist harmoniously.
Parent companies, which produce automobiles and TVs, buy and assemble their parts. To maintain high quality and high productivity in the final products, they have to utilize the same quality-control systems and highly organized delivery systems as the subcontractors. The modern technologies introduced in big business at the beginning have been rapidly disseminated to small-scale factories, which are supported by the parent company not only in technological know-how but also in management and finance, under the so-called pyramid industrial structure.
Furthermore, the Japanese industrial structure, which was historically developed and modernized over a long period, accelerates the closing of the technology gap between big business and small-scale factories. Narrow technological gap at the beginning of industrialization Although Japan had lagged behind in industrialization, her technological standards in the development of the heavy and chemical industries at the beginning of the s were not far behind those of the Western advanced countries. For example, the production of ammonium sulphate began in the s using a nitrogen fixation method.
Although the main technology for this had been imported from the West, Japan succeeded in industrializing her own technology, which had been domestically developed by the Government Experimental Station Tokyo Kogyo Shikenjo. This means that the Japanese ammonium sulphate manufacturing industry had secured a technological standard high enough to compete with foreign technology. Also, in the post-war period, the Tore company, one of the biggest producers of rayon fibre, started manufacturing nylon by introducing nylon technology.
Although the company had already developed the technology at that time, because of patent considerations it had to introduce it from the inventor, Du Pont USA. Thus, the high standard of basic technology had made it possible for Japan to catch up with the Western advanced countries. In the developing countries today, the mere introduction of technology will not lead to success in industrialization because the gap in large-scale, sophisticated technology between the more and the less developed countries is too wide.
Non-reliance on foreign capital in the process of capital accumulation As a result of the economic development process characterized by the high saving and investment propensities, Japan did not attempt to accelerate her industrialization by inducing foreign capital, though she temporarily borrowed money from abroad. This is partly because the Japanese have a peculiarly negative feeling toward foreign capital. With the exception of the petroleum-refining industry, Japan introduced technology but did not induce capital.
Brazil, for instance, relies on foreign capital for more than 5 per cent of its annual net investment in capital equipment. In contrast, Japan hardly depends on foreign capital at all.
How Japan Intends to Support Africa to Be Self-Reliant - Relocation Africa
Many of the developing countries in Asia either restrict the induction of foreign capital or treat domestic capital preferentially in order to avoid either extreme dependence on foreign capital or being ruled by multinational corporations. In their attempts to establish basic industries, however, dependence on both foreign capital and technology is normally unavoidable. This has brought about such problems as a failure to develop the national economy or to improve the people's welfare, in spite of industrialization.
On top of these problems, MNEs multinational enterprises prefer to make decisions on technology to suit their own interests. They do not care for the development of local technology or the modification of traditional technology. Self-reliance in technology should be achieved through self-determination in technology. The dual structure of Japanese culture One of the reasons why industrialization and modernization progressed rapidly in Japan is that the Japanese have accepted foreign culture without resistance. Earlier, the Japanese had established a unique system by accepting Chinese culture.
Japanese culture, therefore, has been "mixed" from the very beginning. It is due to this high adaptability to alien culture that, during the modernization process when industrialization was beginning, some people proposed that the English language supersede Japanese. However, it should be specifically pointed out that, despite this openness to acculturation, everyday life in Japan does not change readily.
The dual structure of everyday life, as exemplified by some Japanese wearing business suits at work and changing into the traditional dotera or padded dressing gowns at home, can be said to have expedited adaptation to alien culture. Japan has attached great importance to science and technology throughout the history of her modernization. However, the leader of Japan's modernization, Sakuma Shozan , at the end of the Tokugawa era, advocated the famous slogan "Japanese Morals and Western Arts. In fact, after the Meiji Restoration, Japan accepted Western science and technology without reserve, while she recognized the value of her independence in the realms of philosophy, morals, and culture itself.
Another example of this dual cultural structure may be that, despite the recent, total Westernization of life style, the Japanese make a sharp distinction between foreigners and their fellow countrymen in terms of ways of thinking or interpersonal relationship patterns. The fact that English words are distinctly distinguished from Japanese words in writing by the use of katakana, or the square form of the Japanese alphabet though many English words have been Japanized and many 'Japanglish' words have been coined , serves as yet another example.
The dual cultural structure may be said to have expedited the modernization of Japan without impairing the traditional value systems. Japan was thus able to establish her own technology and to promote policies for self-reliance in science and technology. Case-studies The general problems related to Japan's acquisition of technology are best illustrated by the case-studies of two technologies, the food-processing and the electronics industry. The first is an industry initially embedded in tradition, in that many of the foods were known and made in pre-industrial Japan.
The second industry, electronics, is today synonymous with the highest technology, in which Japan is now a world leader. These two case-studies, with their judicious mixture of tradition and modernity, provide an insight into the Japanese mastery of technology. The food-processing industry Grafting a modern technology onto a traditional one Agro-based industry links the agricultural with the non-agricultural sector. The development of this industry, therefore, depends on the simultaneous growth of these two sectors, and in this regard it may well reflect a pattern or patterns of national economic development.
The food-processing industry depends to a significant extent on related industries such as the storage and distribution of processing materials and processed outputs. Also, it has to be supported by the manufacturing industries which produce processing machinery and equipment, materials used for packing, wrapping, and filling, and transport machinery for distribution.
Thus, these related industries are integrated within the framework of the food industry. Every country has a variety of traditional food industries based on well-established indigenous processing technologies. These traditional technologies have been improved by the application of modern scientific knowledge. In this sense, there is clearly a process by which traditional technologies are combined with modern ones, creating a hybrid of the two.
We believe that the transfer of technology is a widening cycle of adoption, adaptation, and indigenization of borrowed technology. The creation of hybrid technology must be an essential part of the cycle. The food industry, with its extensive traditional technology, provides an excellent example of this hybridization process. The interactions of five Ms. Using the detailed case-study, we can divide the technological development of the Japanese food industry into three stages.
The first stage, up to the Second World War, was a period of stagnation, except for the development of the canning industry. Most manufacturing was carried out by small producers or shops, and the food habits of the Japanese centred around fresh foods. The only other demand was for salted and dried fish and seasonings. Flour milling, sugar refining and food oil manufacture were the only food-processing industries in this period. The second stage was a "leaping" period.
Westernization, and diversification of the daily life of the Japanese, dramatically increased the demand for processed foods, and brought in mass production. The modernization of the bread-baking, the dairy products, and the meat processes were now developed. There was also the development of the eating-out industry and a rapid increase in the consumption of processed and instant foods.
The increase in consumers' income and the penetration of electric cookers and electric refrigerators were major factors in the changes in consumption.
The rapid expansion of demand for processed food led to the modernization and the quick growth of the industry. The market developed enough to warrant large-scale production. During this period, technology development concentrated on increases in productivity and the introduction of mass production. In the third stage, technology improvements in related industries contributed to the development of the food industry. Things took a dramatic new turn in such areas as the development of packing machines and packing materials plastics, etc.
The import and improvement of overseas technology was the initial stage. Once imported technologies had been well assimilated and digested, they were then improved to conform to the economic and social conditions of Japan, and were further developed and "Japanized.
Techniques such as canning and tomato cultivation and the know-how of contract cultivation, which had been imported from the US, were improved. Plant breeding to produce species suited to the natural conditions of Japan, and other improvements of technology, were achieved through trial and error. The industry made much use of the "experiences and perception" of workers on the shopfloor. The purpose of imitation was not just to make a dead copy, but, through a learning process, to exploit fully these accumulated "experiences and perceptions.
The efforts of the National Food Research Institute towards the technology development of the food-processing industry were crowned with great success. Since local features strongly influenced the food-processing industry, many skilful technology leaders appeared throughout the nation, even at small research facilities, and made a considerable contribution to the modernization of the Japanese food industry. In recent years, the food industry has applied the achievements of gene technology to the food-processing industry, and has moved successfully into a new field of production.
In particular, monosodium l-glutamate monohydrate MSG, called aji-no-moto in Japanese , which has become a huge enterprise, is an outstanding example. This product, invented in Japan in the s, was a rare case of independent invention. The Ajinomoto Company is a leader in food-processing technology. All further development of the technology, ranging from adoption of fermenting techniques to the development of large-scale synthesis methods from oil, was carried out by the company's own research institutes. This is a good example of technological self-reliance, in which continuous efforts to achieve technological development created new manufacturing methods.
The technological development of related industries was also important for the improvement of the food-processing industry. Improvement in the technology of the producers of raw material farmers plays an important role. The correlations between the canning industry and the technology of horticulture were also important. An additional contributing factor was the standardization of agricultural products by the government through the establishment of JAS Japan Agricultural Products Standard. The technological development of food-processing machines and improvements in packing materials and packing machines were significant and should be viewed as innovations in marketing, one of the five Ms.
Taking soy sauce as an example, changes in packing materials from barrels to bottles, and then to plastic bottles, also prompted innovations in the area of transportation. Modern and traditional technologies It is significant that the traditional food industry already had a high level of processing technology in the middle of the Meiji era, when industrialization began. Fermenting technology had also been developed for the production of miso, soy sauce, and sake. The skilful use of these traditional technologies, the introduction of scientific methods, the adoption of processing methods suitable for mass production, and the development of marketing, which brought about a big rise in consumption, were the basis for the remarkable development of Japanese food-processing technology.
Taste and flavour are characteristics not only of foods, but also of associated bacteria and fungi. These differ from one district to another, and are also subtly influenced by climate and other natural conditions. This is where traditional technology can be utilized. Since the food habits of a country depend on its culture, traditional processing methods cannot be radically changed by the adoption of scientific technology alone.
Technological Self-reliance: Sturdy Ideal or Self-serving Rhetoric
As the taste and flavour of soy sauce have played an important role in the traditional food habits of the Japanese, one cannot dispense with the yeast, even for the purposes of industrialization. The brewing process was speeded up by replacing the soybean protein with amino acid, after researchers had studied the biology and biochemistry of the necessary microbes. The development of research on the microbes increased the earning ratio of amino acid, and succeeded in shortening the brewing time. But the traditional skills of experienced workers were utilized here, and were an integral part of the improvement.
Technological development based on a grass-roots movement The Japanese food-processing industry consists of a mixture of small and very large enterprises. Technological innovations are carried out by the huge enterprises, but an important characteristic of Japanese industry is that minor enterprises are aggressive enough to absorb the new technology and are very curious about it. The field survey has proved that the minor enterprises have an excellent entrepreneurial spirit and do not hesitate to invest in technology improvement.
What is particularly significant here is that government support and guidance to minor enterprises also contributed to good results. Additionally, as in the case of soy sauce, the technology developed by huge enterprises was made accessible to other enterprises free of charge for the sake of overall industrial development.
This also contributed to a levelling up of the technology standards of minor enterprises. Another contributing factor was the establishment of a canning technology training centre by private enterprises tin-makers at their own expense. The special nature of Japanese society, in which "conciliation and competition" coexist, has given the technological development of the food-processing industry some of the characteristics of a grass-roots movement. Moreover, the role of the Agricultural Cooperative Union in the development of the industry should not be ignored.
This development, which has also embraced the farming community, has resulted in the spread of technology and the increase in the number of creative ideas and inventions coming from the shopfloor. The electronics industry In addition to the food industry, the Japanese team has done new empirical studies on the electronics industries, especially the semiconductor industry. These industries differ from the food industry in that they can only be developed through their own creative technologies.
Our research, therefore, was conducted in the following sequence. The identification of technological structures and the linkages between these industries and related ones. An analysis of the process of indigenization of borrowed technology in the electronics industries and of government policies for self-reliance. Technology transfer by Japanese multinational enterprises through direct investment abroad.
The theoretical framework for the analysis of the semiconductor industry embraces three systems: the technology system, the organization system, and the inter-organization systems. Why Japanese corporations became successful in the semiconductor industry, although they started out by imitating US technology, was very much a question of their flexibility of management strategy. Our research concentrates on the relationship between technological development, companies' strategies, and government policies. The case-study describes how and why Japanese integrated circuit IC technology has outrun that of the US and achieved self-reliance in high technology.
Keen competition in the consumer product market One of the reasons why Japanese corporations became successful in the IC industry was their choice of product market. They produced semiconductors and ICs for commercial goods rather than for military and space use. Keen competition in the market stimulated drives for product innovation, such as in transistor radios, portable colour televisions, and calculators, and for production efficiency, in order to produce cheaper, better quality goods. In the period of innovative imitation of the transistor stage, research activities centred on the utilization of already existing semiconductors to produce new commercial goods.
This was market-oriented innovation. However, with the accumulation of basic knowledge and the constant effort to catch up with the latest technologies, the emphasis began to shift from market-driven to technology-driven innovation. Competence in technological innovation became the key to success at this period, and greater efforts and larger expenditures for research activities were therefore required. It was this successful transformation from market-competition-driven innovation to technology-driven innovation that enabled Japan to obtain the world leadership in the field of memory IC.
Flexible organization in tune with the developmental stage of technology The second reason for success was that even big Japanese IC companies avoided bureaucratic organizational structures and used flexible organization to support technology development. As the demand for innovativeness increased, the layer of research activities was increased from one to three steps: 1 basic research in the central research institutes; 2 applied research for both technological development and commercial product development in the technical centre outside the division but inside the division group ; and 3 immediate technological and commercial research within the division.
Furthermore, in order to bring about changes in the social system without being restricted by the current bureaucratic organizational structure and to create the proper environment for researchers, task forces and outside ventures were and are made use of. Coordination of business and government The technological development of Japanese IC industry has often been thought to be heavily supported by the government. Repair including minor improvement. Beginning of domestic production. After the first four steps have been passed through, the way to domestic production is open.
There is a big difference between this last stage and the previous four. These five stages are necessary for technical self-reliance, and none of them can be omitted or skipped over, though latecomers can save on time and manpower. However, as much time and manpower will be used to build up a network of related techniques and services, latecomers should not be overambitious. A longer time is required to master modern technology, for example in "oil countries" where income is high, but there is no infrastructure of knowledge.
Among developing countries, India and China are ahead of the others in this regard. The size of their resources, the number of skilled workers, the infrastructures, and their existing technical skills guarantee them this position. However, their linkages between know-how and services are as yet inadequate. Whether or not technology transfer is possible depends on the presence of know-how and services.
It is difficult, therefore, though not impossible, to transfer technology in technical fields that lack these essential prerequisites. Although it would be courageous to attempt to acquire know-how in such a field from scratch, it would not be advisable - it is more efficient to start from a "copyable" position. For a technology to be "copyable" means that the five Ms -materials. Three stages to technological self-reliance. During its first stage of technological self-reliance, the level of Japan was no higher than that of developed countries in the nineteenth century.
Until that time, modern machines had been made by combining various kinds of parts, for example, moulded gears and wooden or ceramic parts which were not necessarily metal-made. The collective techniques of stonemasons, ceramists, metal-workers, loom-makers and water-mill makers were utilized. A network linking national techniques ranging from the manufacture of iron and steel to that of machine tools was created, reaching down to the lowest level, and this accelerated the transfer of new techniques. Since the related techniques and services already existed, what was required was the import of simple and substantial technology at cheaper prices.
This is what we call "primary technological self-reliance. In Japan it took about 60 years to reach this stage of primary self-reliance, even though the initial conditions were favourable. In the subsequent 60 years, the present position was reached in two stages: one in which the mass-production technology of automobiles and home electric appliances was transferred and stabilized secondary self-reliance , and the other third stage in which small-quantity production was diversified within the framework of mass production.
Secondary self-reliance consists in a high level of TQC total quality control , where the culture of "Japanese-style management control" is important. The tertiary self-reliant stage symbolizes the age of automation and the unmanned factory, particularly with respect to electronics manufacture and the manufacture of production machines.
Once this third stage is reached, technology development will be the main concern of management. Degree of self-reliance of technology. The technology development of latecomers progresses from technology transfer to self-reliance. Although a large amount of such expenditure may bring about technological development, this cannot be regarded as useful unless it is applied for the purposes of economic development.