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In this age of high technology, Japan's success in continuous improvement and innovation in key industries, ranging from steel and automobiles to electronics, has been spectacular, and the unique institutional arrangements that have supported this success have attracted wide attention. Yet, with only a few exceptions, the discussion of Japan's innovation system has tended to be anecdotal. It is the consequent need for a more solid analysis based on fact that this book fills. The chapters in this book investigate Japan's current innovation system through empirical, mostly quantitative, research. These chapters cover a wide range of subjects, including technology importation, industrial standards, product development, R&D personnel management, overseas R&D, and higher education. In addition, detailed industry studies cover the automobile, electrical machinery, semiconductor, and steel sectors. The authors, the leading Japanese scholars on these subjects, reveal the rich and complex nature of the Japanese innovation system, and describe in detail its strengths and weaknesses.