In this final chapter, the analysis of the cooperative research projects and the history of the Japanese computing and electronic devices industry is linked to the broader concerns of this book. These concerns relate to the process of technical change as one of the main determinants of differences between national economic performances.

The chapter begins with a discussion of one of the important determinants of Japanese international competitiveness in the computing and electronic devices industry, namely the process of incremental technical change brought about within a given production process. It is shown that in Japan forms of organization have evolved which have facilitated the effective mobilization of information flows, which in turn have been utilized as an important input for innovation.

These forms of organization have been highly effective in bringing about incremental changes, the cumulative significance of which has in some cases outweighed the importance of more radical changes. In this way a successful process of technical change ‘for tomorrow’ has occurred in Japan. Furthermore, it is important to stress that these forms of organization have been developed primarily by the Japanese companies with little or no influence from government.

However, qualitatively different problems occur in attempting to create technologies for ‘the day after tomorrow’, even where the country in which the technologies are being created is a follower in the process of trying to catch-up with the international leaders.