Background

By 1976, as was shown in the preceding chapter, the Japanese had made substantial progress in considerably narrowing the technology gap between local producers and the world leaders in the area of computing and electronic devices. In part this was attributable to the government policies and measures which were analysed. In 1975, however, an event occurred that was to be the proximate cause of the establishment of a new MITI-initiated research project with some fundamentally novel features. A senior member of NTT visited IBM in the United States and was shown what he thought to be a one-megabit VLSI chip which allegedly would form the basis of IBM's next series of computers, codenamed ‘Future System’. On his return to Japan news of this event spread rapidly. Eventually MITI's Machinery and Information Industries Bureau (which was established in 1973, partly with the purpose of bringing together machinery and information technologies) took the initiative in setting up a special committee under the auspices of the Japan Electronic Industries Development Association (JEIDA). This committee examined the state and expected future importance of VLSI technology and recommended the establishment of the VLSI Research Project, 1976–80.

Foreigners' conventional wisdom regarding the VLSI project

The conventional wisdom held by foreigners regarding both the VLSI project and the other MITI-initiated research projects is well summarized in the conclusions drawn from hearings held by United States congressional subcommittees into the question of Japanese cooperative research.