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have reduced the tensions that come from competing claims and to have produced wage outcomes
that left firms with sufficient profits to finance high
levels of investment (Soskice, 1990). R&D activity in Japan soared in the 1980s so that, by 1995, Japan had the highest ratio of R&D spending to GDP among
the G7 countries (Wolff, 2000).
See Flath (2000, p. 244) for a description of the debate as to whether the function of the groups, reinforced by cross-shareholding,
was to protect valuable relationship capital or merely managers’ self-interest from outside scrutiny.
In their words: ‘The notion that Japanese industrial organization is an insuperable barrier to technological progress can be
dismissed’ (Okimoto and Nishi, 1994, p. 179). 10 A. Boltho and J. Corbett (ii) Interconnections in the Model
A considerable body of literature has long argued
that there were rational, economic explanations for
the persistence of each of these features separately
throughout most of the post-war period.13 More
recently, however, Aoki (1994) has stressed the
interconnection between these various key features. In his view, the ‘rank hierarchy’ characteristics of many parts of the model reinforce each other
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.
- Summer '13