Transition from imitation to creation

It is commonly accepted that the most important strategies for industrialization and economic development of developing countries lie in the development of industrial technology, and that the desirable approach for such development must be sought in the efficient importation and utilization of advanced technologies. Generally, the linkage between the acquisition of new technologies and their innovation can be divided into two categories: first is innovation ‘from within’ through indigenous R&D activities; and other is innovation ‘from outside’ through technology transfer. Most countries in Europe and the United States belong to the former, while Japan represents the latter. Japan introduced substantial amounts of technologies from outside, which were enlarged in harmony with indigenous technology development. Thus, the imported technologies can be regarded as a complimentary means for the indigenous technology development. As a case in point, Japan demonstrated the Japanese model of ‘innovative technology transfer’ by placing emphasis on the iron and steel, petrochemical and electronics industries. Japan accomplished enormous economic development in a short period of time by carrying out the successive stages of: from importation and utilization of advanced technologies on a large scale, to demand creation, to investment for expansion of facility, to reduction of manufacturing costs and reinforcement of international competitive power, to export increasement and improvement of balance of payments. In short, the Japanese model represents a strategy of bold importation, digestion and creative adaptation of advanced technologies.