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Why America's corporate innovation beats Japan's

An interesting article about Innovation and Japan from the Economist.

THE most important factor that led to America’s stunning success in information technology was not the free market but government regulation. Federal trustbusters made AT&T lease its lines to others and eventually broke up the giant telephone company. Later they forced IBM to separate its hardware and software businesses. These actions opened the door to competition and lower prices. More important, they changed the industry’s structure, replacing monoliths with smaller, specialised companies which have to work with others with complementary skills. The result has been tremendous innovation.

-- Innovation through regulation, The Economist