This is the first Open Access book introducing more than 20 of Japan’s leading innovative entrepreneurs from the 17th century to the present. The author outlines the innovative business models created by entrepreneurs including SoftBank’s Masayoshi Son, Fast Retailing (Uniqlo)’s Yanai Tadashi, Honda’s Soichiro Honda, Sony’s Akio Morita, Panasonic’s Konosuke Matsushita, and Toyota’s Kiichiro Toyoda, as well as their predecessors including Takatoshi Mitsui of Mitsui Zaibatsu, Shibusawa Eiichi of Daiichi Bank. While introducing the innovators, the author also raises three broader questions: 1. Why did Japan industrialize earlier than any other country outside Europe and the United States? 2. Why was Japan able to realize unsurpassed economic growth between the 1910s and the 1980s? 3. Why has Japan’s economy stagnated for more than 30 years since the 1990s? Drawing upon analytical concepts including Schumpeter’s breakthrough innovation, Kirzner’s incremental innovation, and Christensen’s disruptive innovation, the author contends that Japan’s successes were based on unique and systematic breakthrough innovation and an accumulation of incremental innovation, while it later fell victim to a combination of breakthrough innovation from advanced countries and disruptive innovation by developing nations.

A sweeping global history of entrepreneurial innovation Whether hailed as heroes or cast as threats to social order, entrepreneurs—and their innovations—have had an enormous influence on the growth and prosperity of nations. The Invention of Enterprise gathers together, for the first time, leading economic historians to explore the entrepreneur's role in society from antiquity to the present. Addressing social and institutional influences from a historical context, each chapter examines entrepreneurship during a particular period and in an important geographic location. The book chronicles the sweeping history of enterprise in Mesopotamia and Neo-Babylon; carries the reader through the Islamic Middle East; offers insights into the entrepreneurial history of China, Japan, and Colonial India; and describes the crucial role of the entrepreneur in innovative activity in Europe and the United States, from the medieval period to today. In considering the critical contributions of entrepreneurship, the authors discuss why entrepreneurial activities are not always productive and may even sabotage prosperity. They examine the institutions and restrictions that have enabled or impeded innovation, and the incentives for the adoption and dissemination of inventions. They also describe the wide variations in global entrepreneurial activity during different historical periods and the similarities in development, as well as entrepreneurship's role in economic growth. The book is filled with past examples and events that provide lessons for promoting and successfully pursuing contemporary entrepreneurship as a means of contributing to the welfare of society. The Invention of Enterprise lays out a definitive picture for all who seek an understanding of innovation's central place in our world.

From being the last country in the world to open its doors to global trade in the 1850s to becoming the second industrialized nation in the 1960s, Japan has experienced impressive economic and social development over the last two centuries. In the last three decades, however, it became entrenched in a long phase of economic stagnation, dropping from second to third place in the global economy, having been overtaken by China in 2010. Inspired by the recent works on the history of capitalism, this history of business shows that the Japanese company was not the product of a unique national culture. Japanese capitalism was largely shaped by a political, economic, and institutional environment, which offered a variety of new opportunities to entrepreneurs, who also played a central role in the process of change. Rural capitalism that formed during the period of national seclusion shifted to industrial capitalism after the opening of the nation to global trade: this form of capitalism was close to those observed in other late industrializing countries, and was characterized by the monopolistic domination of large business groups or zaibatsu during the interwar years. The Second World War saw the emergence of wartime capitalism with the central government as the dominant actor in the economy, and, after 1945, the need to reconstruct the country and catch-up with advanced Western economies gave birth to a new form of capitalism based on a cooperative relationship between business and the state: communitarian capitalism, more broadly known as the Japanese Business System. The liberalization and deregulation brought new changes in the business system, marked by the emergence of financial capitalism in the 1980s and 1990s.

Japan's innovators and entrepreneurs have survived recession in the 1990s to prosper in today's competitive business environment. This volume explores the struggles of entrepreneurs and civic-minded local leaders in fostering innovative activity, and identifies key business lessons for an economy in need of dynamic change. Ibata-Arens offers in-depth analysis of strategy in firms, communities and in local government. The book examines detailed case studies of high-technology manufacturers in Kyoto, Osaka and Tokyo, as well as bio-tech clusters in America--demonstrating far-reaching innovation and competition effects in national institutions

Japan's innovators and entrepreneurs are a real success story against the odds, surviving recession in the 1990s to prosper in today's competitive business environment. Innovation and Entrepreneurship in Japan explores the struggles of entrepreneurs and civic-minded local leaders in fostering innovative activity, and identifies key business lessons for an economy in need of dynamic change. Ibata-Arens offers in-depth analysis of strategy in firms, communities and in local government. Innovation and Entrepreneurship in Japan examines detailed case studies of high-technology manufacturers in Kyoto, Osaka and Tokyo, as well as bio-tech clusters in America - demonstrating far-reaching innovation and competition effects in national institutions, and firms embedded within local and regional institutions. The book is essential reading for academics and students of business, economics, political economy, political science, and sociology. It will also appeal to investors, entrepreneurs and community development organisations seeking new perspectives on global competition and entrepreneurship in high-technology enterprises.

First Published in 1999. Routledge is an imprint of Taylor & Francis, an informa company.