Empirical research has shown that "opportunity-driven" entrepreneurship is the wellspring of growth in the modern market economy. In Japan, the relative dearth of opportunity-driven entrepreneurship has contributed to the nation's economic malaise over the past two decades -- since the asset price bubble burst in 1991.
Although there are encouraging signs -- given the sophistication of Japan's technological base, the promise of female entrepreneurs, the advent of start-up incubators and the rise of "intra-preneurship" within established companies -- entrepreneurship levels today are markedly low relative both to pre-1991 Japan and to current levels in other developed countries. Ironically, during Japan's two lost decades, foreign-run enterprises, small businesses and entrepreneurs accounted for nearly all job creation. To revitalize its sluggish economy, Japan must create incentives to promote homegrown start-ups and must rapidly commercialize patented, cutting-edge technologies.
To read the original article: The Entrepreneurship Vacuum in Japan: Why It Matters and How to Address It - Knowledge@Wharton
