For innovations to happen, poorly performing large companies need to be allowed to fail, and innovative smaller companies must be nurtured and funded, he said.
The technological prowess is there. Japan still produces its share of Nobel Prize winners, ranking eighth in the world, and Japan’s top universities file as many patents as do top U.S. universities, according to Ishii.
“Japan has the capability to innovate. But the problem is that this capability does not translate to commercial value.”
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