Final Remarks

Sumio Saruyama () and Peng Xu ()
Additional contact information
Sumio Saruyama: Japan Center for Economic Research
Peng Xu: Hosei University

Chapter Chapter 5 in Excess Capacity and Difficulty of Exit, 2021, pp 99-106 from Springer

Abstract: Abstract In this chapter, we will summarize the lessons learned from the two lost decades. Successful Japanese electronics companies were experiencing steady decline in the early 1990s, but they continued to invest in declining segments to maintain employment. Ultimately, employment adjustments were frequently made till the first half of the 2010s, to resolve overcapacity problems that were abandoned in the first lost decade. Japan has been constantly facing new entrants and technological changes. As fruitful outcomes of the massive downsizing in the electronic products unit, some companies have achieved concentration in core competence and their performance has improved. However, most declining electronics companies are still struggling. Worldwide new entries and technological changes are taking place in many industries after the two lost decades, and it is still a major issue to prevent profitable companies that are beginning to fade from easy investment and outdated R&D. Instead, labor market reform, capital market reform advocating investment activism, spinoffs, M&A, buyouts, open innovation, and corporate venture investment are necessary to regain technological advantages and to acquire the seeds of growth.

Keywords: Two lost decades of the Japanese economy; Electronics industry; Zombie firms; Excess capacity; Technological changes; Employment practices; Exit; M&A; Regulation; Startups (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-981-16-4900-4_5

Ordering information: This item can be ordered from
http://www.springer.com/9789811649004

DOI: 10.1007/978-981-16-4900-4_5

Access Statistics for this chapter

More chapters in SpringerBriefs in Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().