Development and innovation in the Japanese chemical industry

This paper sets out to review the process of Japan's post-war economic development and the role of government's industrial policy from a historical perspective. It also reviews - against the background of the fundamental changes in Japan's economic paradigm in the aftermath of the end of the Cold War - the emergence of the Asia-Pacific region, the bursting of the bubble economy and the sharp appreciation of the yen-dollar exchange rate. In particular, the paper examines how the Japanese chemical industry is trying to meet enormous challenges through the restructuring of business operations, intensification of R&D and strategic alliances at home and abroad.