The Japanese IT sector has significantly failed to create software innovation in comparison with the U.S. IT sector in recent years, which reflects the lack of competitive performance by Japanese IT sector.
This article determines the ways that led to such consequences and explains the declining path of Japanese software industry. The comprehension of the transformational role of software and its value creating potential determines the sources in the evolution of the industry’s structure.
It concludes with how to learn from Japanese failure, to build a more strengthen and competitive industry in software and gives a direction for other country’s policy makers.
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