Technological Lessons for the U.S. and Japan

International competition in technology is forcing industry and government to reevaluate their traditional roles and develop new working relationships. As a result of government-funded research and development, the US has been a leader in the creation of new technology. Japan has joined imported technical know-how with superior production processes to produce low-cost, high-quality goods. Many Americans see that flow of technology as one-sided. However, the US is not alone in its ability to innovate. While the US is creating technical breakthroughs and new industries, Japan is excelling at incremental advances in existing products. Both types of innovation are critical for success in world markets. A survey by the Ministry of International Trade and Industry has rated Japan's development capability ahead in 20 areas and the US ahead in only one. Given these estimates, it can be seen that the flow of technology no longer is one way. Companies that prosper in the new global era will combine the innovative, flexible thinking of the West with the meticulous, strategic mentality of the East.