Article
Foreign Affairs

Fixing What Really Ails Japan

By: Michael E. Porter and Hirotaka Takeuchi

Format:Print

Abstract

Conventional wisdom claims that Japan’s “economic miracle” stemmed from its unique model of government guidance and its revolutionary corporate management techniques. An in-depth study proves this seriously wrong. Rampant government intervention has caused more business failures than successes, and a fundamental cautiousness has led Japanese companies to ignore strategic thinking and shun risk. To pull out of its current slump, Japan must embrace competition, innovation, and bold leadership.