Was it Claude Levy-Strauss (in "Tristes Tropiques"?) who wrote that the rise and fall of civilisations goes in a westerly direction: the Mid-East, then Europe, then America, then Japan (about to rise at the time of his writing, in the 1950s). Extending this observation: ... then China and India. And then? From the Nikkei website: Monday, June 4, 2001 ANALYSIS: Japan Losing IT Edge To Rest Of Asia
TOKYO (Nikkei)--Japanese companies have been shifting production to other parts of Asia to take advantage of the region's cheaper labor costs ever since the domestic economy began to slump as the yen appreciated sharply in the 1980s.
Recently, however, there have been some changes to the type of operations being moved offshore, with an increasing number of firms transferring research and development, once considered the epitome of Japanese industrial excellence.
Kaga Components Co., a Tokyo maker and seller of switching power units, plans to build comprehensive manufacturing operations in Malaysia by the end of this fiscal year, handling product development through to production of finished goods, after setting up a production unit in the country in fiscal 2000.
"Many major Japanese electric machinery makers have production units in Malaysia. We are being forced to move R&D operations there to supply parts that meet customer needs," a company executive said in explaining the move.
Kaga Components thought its biggest challenge would be recruiting skilled engineers, but that proved easier than thought. The state of Penang, where the company set up its local unit, is the hub of Malaysia's high-tech industry and has a plentiful supply of skilled engineers.
China, India and other Asian countries are becoming major providers of skilled labor in cutting-edge industries. According to a survey by the Fuji Research Institute, 1.1 million university/college students enrolled in science and engineering-related courses in India in 1998. In China, the number was around 900,000 in 1999. These figures compare with 280,000 science majors graduating in the U.S. in 1992 and 150,000 in Japan in 1994.
Japan may still lead the world in manufacturing but is beginning to fall behind the U.S., Europe and some Asian countries, such as South Korea, in software development and other IT fields. In South Korea, former researchers at major local companies and returnees who studied in the U.S. have been thriving in the Internet-related business.
Japan is also lagging its neighbors in use of the Internet. Despite the government's declaration that it will work toward making Japan an IT superpower, only 20% of Japanese people enjoy regular access to the Net, far below the 30-40% range for Singapore, South Korea and Hong Kong.
With the declining standard of science and engineering education and the slow progress of deregulation, some experts now worry that Japan's standing in the industrial world will begin to decline, unless remedial action is taken.
(The Nihon Keizai Shimbun Saturday morning edition) |