Innovation Policy in Japan

ITPS, Swedish Institute for Growth Policy Studies
http://www.innovation.lv/ino2/publications/japan.pdf

The large apparent difference in economic performance between the USA and Japan during the last decade has been seen as evidence that the American innovation system today is more effective than the Japanese. Especially two differences have been emphasized. One is the creation of new high tech venture companies in such fields as IT and biotechnology, of which there has been very little in Japan. The other concerns the internationally leading position of American research universities and their seemingly effective system for transfer of technology and knowledge to industry. p.9

This is the concern about innovation for Japan for long time, but it might be difficult to change the situation because it would be strongly connected with conservative aspects of Japanese business culture.