One work-around: doing your R&D outside Japan. Feeding into that need is the shrinking number of college graduates to staff R&D inside Japan. From firm visits as the judge for an innovation competition, I know several examples in automotive for Japanese suppliers doing core work in the US and Europe. Of course this may be successful but not generate value-added for the domestic Japanese economy. Inside Japan, well, mobility is indeed low, though "shukko" and other work-arounds may mean it is _slightly_ better than your data suggestion.

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FYI Ministry of Economy, Trade and Industry (Japan), “IT-jinzai jukyu ni kan suru chosa (gaiyo)” [Study on the Supply and Demand of IT Personnel (Summary)], October 20, 2022, https://www.meti.go.jp/policy/it_policy/jinzai/gaiyou.pdf.

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Richard good description of the issue. There are too many issues with the Japanese system to list.

I think the top is not having a system that allows for bankruptcy. Are you really going to leave a good paying job to strike it out on your own with the possibility of losing everything you have worked for?

Lack of respect for the rich is another issue. Because CEO and senior management pay it too low the GINI coefficient is too low. A low GINI coefficient is seen as good in Japan, but it means that there isn't a wealthy group of people that have the means to be "angle" investors or early adopters.

Japan does not have an equity culture. Japanese corporates are not focused on shareholders or shareholder returns. Japan needs to take the pension fund assets back from the government. Quite often total return is not the main focus of these government run pension funds -- this means corporates aren't focused on returns. Without an active and efficient equity market (especially for IPOs) you can't fund growing companies.

Japan has many great scientists and they are able to produce many patents -- in the US a lot of the motivation of making the effort of starting a new company is financial. This works well because even if your focus is simply the betterment of society, you will need money to make it happen.

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