Technical Progress in an Input-Output Framework with Special Reference to Japan’s High-Technology Industries

Abstract

Abstract Rapid technical progress in Japan’s manufacturing industries in recent years, especially after the oil price shock in 1973, has attracted much international concern among economists and policymakers. Although technical progress at the macroeconomic level has suffered from a deterioration since 1973, the manufacturing industries have experienced a remarkable annual increase in productivity, especially the high-technology Industries such as robotics, microelectronics, fine chemicals, fine ceramics, and biotechnology. The rise in these new sectors, which have replaced the traditional ones such as steel, petrochemicals, ship building, and heavy electrical appliances, facilitated a rapid structural change during the 1970s that was characterized by a shift from capital-intensive and energy-using sectors to knowledge-intensive and energy-saving sectors.