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Many have described the Japanese competitive success in information technology; very few have explained it. This book advances our understanding by developing the concept of the Japanese Innovation System - an arrangement consisting of competing and cooperating private companies, government policy-makers and researchers, and universities. It will be of interest to all teachers, students and policy-makers interested in technological competition. An important part of the explanation of Japanese success relates to the ability to create innovations and to continually improve and update products and processes. This book shows that equally important has been the foresight of the Japanese in creating innovations for the distant future where problems of uncertainty are even more pronounced.