THE FEEDBACK LOOP BETWEEN TECHNOLOGY AND ECONOMIC-DEVELOPMENT - AN EXAMINATION OF JAPANESE INDUSTRY

The Japanese economy has grown remarkably because of the driving force of industrial development. This has been largely attributed to the fe edback loop between technological development and economic growth. Jap an may now face the prospect of the loop's deconstruction, however, be cause industry's research and development (R&D) investment has stagnat ed as a result of the ''bubble economy'' and its bursting. This paper first examines the possibility by reviewing systems of Japan's industr ial technology. Second, it conducts an empirical analysis of the curre nt state of R&D activities in Japan's manufacturing industry. Third, i t analyzes the impact of such activities; and fourth, it explains the structural background of a stagnation of R&D activities.