NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Is Japan's Innovative Capacity in Decline?

Lee Branstetter, Yoshiaki Nakamura

NBER Working Paper No. 9438
Issued in January 2003
NBER Program(s):   ITI

This paper investigates changes in the output and productivity of research and development activities in Japanese manufacturing firms over the 1980s and 1990s. Evidence from aggregate patent and R&D statistics and a micro-level analysis of R&D productivity at the firm-level suggest that there has been a slowdown in the growth of Japanese research productivity in the 1990s. The paper goes on to suggest possible explanations for this slowdown and reviews some of the steps Japanese firms are taking to increase the effectiveness of their R&D. The paper presents empirical evidence concerning the impact of one of these steps the creation of technology alliances with U.S. firms on Japanese innovative output.

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Document Object Identifier (DOI): 10.3386/w9438

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