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By Toyohiro. Clegg, Stewart. Kono
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Extra resources for Trends in Japanese Management: Continuing Strengths, Current Problems and Changing Priorities
The Japanese do not lack creativity and lead the world in applied research, where the bulk of research activity is concentrated. 1pending (billion dollars) Japan Industry Research institutes Universities Total us UK, Germany, France (approximate) 94 19 19 132 172 40-50 Patent applications Japan USA UK, FRG, France 389 000 235 000 90-120 000 R&D personnel 384 41 161 586 960 150 000 000 000 000 000 000 Share of patents applied in the US(%) 21 56 2-5 Source: White Paper 1998 (Tokyo Science and Technology Agency, 1998).
The style of personnel relations tends to be authoritative, with the senior employee having strong control over his subordinates. Under the lifetime employment system senior employees are powerful because subordinates cannot move to another company, even if they feel that a superior is being unfair. Subordinates calls their bosses by the title of the position they hold, not by their given name. Employees are required to stay late at the office if their chief is still working, and they have to work during their holidays if so ordered.
This is particularly the case with the construction industry and the agricultural sector, and public investment in these areas tends to be abundant. By contrast the more recently developed information industry does not have affiliated members so there is less public spending on information systems. Comment Government-industry affiliations were initially useful in directing and supporting weak infant industries. However they impeded competition and created entry barriers to foreign companies. Commentators in many countries once expressed their admiration of government-business cooperation in Japan, particularly the guidance exercised by MITI.