The Effect of Innovations in Information Technology on Corporate and Industrial Organisation in Japan

Throughout the last two decades high technology in fields such as microelectronics, telecommunications, new industrial materials, biochemicals and new energy,1 has been making rapid strides in the industrialised nations. Above all, innovations in the first two fields mentioned have appeared one after another at a great pace: in microelectronics, the smaller size, higher integration, faster processing and lower prices of integrated circuits (IC), the smaller size, faster processing and lower energy requirements of electronic computers, and developments in microprocessors; and in telecommunications, developments and utilisation of microwaves, optical fibre cables, satellites, electronic switching, value-added network (VAN) services, cable television (CATV), integrated services by digital networks (ISDN), etc. These innovations in the technology for accumulating, processing and transmitting information have had enormous repercussions on the entire fabric of our economy and society.2