Controllability of Technological Paradigm Shift and Sustainable Growth: An Empirical Research on 1970–2002 Japanese Economy

Abstract

By computer simulation applying a social learning dynamics model, it is formerly argued that depreciation rate management could maintain sustainable growth with technological change over the long term. The primary objective of this chapter is to argue the results of innovation management in the Japanese economy. Several results could be suggested by an empirical examination as follows. Japan’s asset securities reports demonstrate that Japan’s listed manufacturing companies have satisfied the conditions for managing sustainable growth. However, the private sector capital stock statistics demonstrate that Japan’s unlisted manufacturing companies might have failed to manage sustainable economic growth with technological change by depreciation rate since the late 1990s. It can be pointed out that one contributing factor to the IT productivity paradox is inefficiency caused by systemic inconsistency between Japan’s listed and unlisted manufacturing companies.