Entrepreneurship in the Information Age: Beyond Craftsman Tradition and the Future of Japan's Capitalism

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This project explores critical, yet poorly understood aspects of Japan's entrepreneurship as the economy shifts from industrial to the informational economy. Although entrepreneurship has been a focus of numerous studies in economic development, there is no consensus on its definition, process of formation, and how it can be effectively promoted. Furthermore, entrepreneurship is seldom examined with a cross-national perspective, and as a result, important foundations, such as regional tradition, cultural norms, and business practices, have largely been ignored as drivers of entrepreneurship. This project addresses the changing role of regional-cultural contexts for entrepreneurship, through historical as well as contemporary studies of three distinctive regions in Japan. The project seeks to 1) examine risk-handling and incentive-generating characteristics of entrepreneurs in the information sector; 2) analyze how different regional contexts (industrial networks, social interactions, and cultural practices) function as catalysts for entrepreneurs; and 3) assess the role of entrepreneurship promotion policy for the 21st Century. The project will involve interviews of firm mangers and governmental officials in each region, and the data will be analyzed with a focus on those factors relating to the socio-cultural foundations of entrepreneurship and the geographical ties to the region.The research will provide empirical evidence that could lead to the development of a theoretical framework that integrates economic and cultural incentives in the study of entrepreneurship. The project will also generate a foundation for comparative research on the development of informational economy between regions and countries. In practical terms, understanding the dynamics of entrepreneurship in the world's second largest economy has implications on the growth and stability of the global economy.