Page 22 - Japanese Growth and Education: 演講人:Motohisa Kaneko教授
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                       These changes affected the economies of industrialized countries, but

                  the impact had been particularly felt strongly in Japan. The regime of human
                  capital formation in Japanese corporations, and the J-mode, that had worked
                  so effectively in improving economic productivity so far suddenly seem to be

                  irrelevant in the face of emerging tide of economic competition.
                       In the emerging competition competitiveness arise from finding new
                  combination of technology and demands. Business enterprises have to

                  change their organization constantly inducing high levels of labor mobility.
                  Consequently, the skills and knowledge required for work becomes increasingly
                  diverse. They also become obsolete very shortly. In order to equip the workers
                  with such skills and knowledge, the firms can no longer rely on the existing

                  knowledge and skill formation in the workplace. Outside sources have to be
                  utilized for in-house training. At the same time, some workers are required to

                  have specific skills to get a new employment opportunity. In short, specific
                  knowledge has to be acquired constantly beyond the realm of existing
                  organization.
                       Looking from this perspective, J-mode has significant limits. Since it is

                  based on the existing organization, it is ineffective in creating and transmitting
                  the kind of knowledge not required by the organization. It is difficult to

                  introduce innovation arising from outside of the organizational. When it is
                  expected that technology or demands are about to undertake a substantial shift,
                  this makes a critical disadvantage.
                       Moreover, set in the environment of global economic competition, many

                  enterprises are forced to struggle for survival and to achieve short-term benefit is
                  given priority. They have to respond to the changes in the market and technology

                  as quickly as possible. Under these circumstances, it is becoming increasingly
                  difficult for the enterprises to sustain the lifetime employment system. While
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